We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Is a Beat in Store for Sonic Automotive's (SAH) Q4 Earnings?
Read MoreHide Full Article
Sonic Automotive (SAH - Free Report) is set to release fourth-quarter 2019 results on Feb 19, 2020, before the opening bell. The Zacks Consensus Estimate for the to-be-reported quarter is a profit of 89 cents per share on revenues of $2.8 billion.
Sonic Automotive, one of the largest retailers of the world, reported better-than-expected results in third-quarter 2019, primarily amid solid contribution from the used-vehicle segment. As far as earnings surprises are concerned, the company displays an excellent record of surpassing estimates in the trailing four quarters, with an average positive surprise of 31.6%.
Investors are expecting an earnings beat for Sonic Automotive this time as well. Encouragingly, our model also indicates the same.
Trend in Estimate Revision
The Zacks Consensus Estimate for fourth-quarter earnings per share has been upwardly revised by a penny in the past 30 days. However, it indicates a 17.1% increase from the year-ago reported earnings of 76 cents per share. The Zacks Consensus Estimate for revenues also indicates year-over-year growth of 7.4%.
Factors at Play
The company’s EchoPark brand of standalone used-vehicle stores is likely to have positively impacted top-line growth in the to-be-reported quarter. Sonic Automotive’s focus on store expansions, customer-centric shopping experience and high-quality vehicle offerings are expected to have contributed to revenue growth of the firm. In addition to the company’s EchoPark unit, Sonic’s new vehicle franchise business is also anticipated to have witnessed growth and reaped benefits from strategic acquisitions.
Nonetheless, it is to be noted that the firm is bearing the brunt of high SG&A costs over the last several quarters. However, it is expected that solid performance from its used vehicle segment, particularly the EchoPark business, might have offset the high costs in the quarter to be reported.
Earnings Whispers
Our proven model predicts an earnings beat for Sonic Automotive this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat.
You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Sonic Automotive has an Earnings ESP of +3.96% and a Zacks Rank #3.
Here are some other auto stocks, which, according to our model, have the right combination of elements to post an earnings beat in the to-be-reported quarter.
LKQ Corporation (LKQ - Free Report) is scheduled to report fourth-quarter results on Feb 20. The stock has an Earnings ESP of +1.68% and carries a Zacks Rank #3, currently.
Visteon Corporation (VC - Free Report) is set to release quarterly numbers on Feb 20. The company has an Earnings ESP of +2.63% and carries a Zacks Rank of 3, at present.
Magna International Inc. (MGA - Free Report) has an Earnings ESP of +3.34% and is a Zacks #3 Ranked player. The company is slated to report quarterly results on Feb 21.
Today's Best Stocks from Zacks
Would you like to see the updated picks from our best market-beating strategies? From 2017 through 2019, while the S&P 500 gained and impressive +53.6%, five of our strategies returned +65.8%, +97.1%, +118.0%, +175.7% and even +186.7%.
This outperformance has not just been a recent phenomenon. From 2000 – 2019, while the S&P averaged +6.0% per year, our top strategies averaged up to +54.7% per year.
Image: Bigstock
Is a Beat in Store for Sonic Automotive's (SAH) Q4 Earnings?
Sonic Automotive (SAH - Free Report) is set to release fourth-quarter 2019 results on Feb 19, 2020, before the opening bell. The Zacks Consensus Estimate for the to-be-reported quarter is a profit of 89 cents per share on revenues of $2.8 billion.
Sonic Automotive, one of the largest retailers of the world, reported better-than-expected results in third-quarter 2019, primarily amid solid contribution from the used-vehicle segment. As far as earnings surprises are concerned, the company displays an excellent record of surpassing estimates in the trailing four quarters, with an average positive surprise of 31.6%.
Sonic Automotive, Inc. Price and EPS Surprise
Sonic Automotive, Inc. price-eps-surprise | Sonic Automotive, Inc. Quote
Investors are expecting an earnings beat for Sonic Automotive this time as well. Encouragingly, our model also indicates the same.
Trend in Estimate Revision
The Zacks Consensus Estimate for fourth-quarter earnings per share has been upwardly revised by a penny in the past 30 days. However, it indicates a 17.1% increase from the year-ago reported earnings of 76 cents per share. The Zacks Consensus Estimate for revenues also indicates year-over-year growth of 7.4%.
Factors at Play
The company’s EchoPark brand of standalone used-vehicle stores is likely to have positively impacted top-line growth in the to-be-reported quarter. Sonic Automotive’s focus on store expansions, customer-centric shopping experience and high-quality vehicle offerings are expected to have contributed to revenue growth of the firm. In addition to the company’s EchoPark unit, Sonic’s new vehicle franchise business is also anticipated to have witnessed growth and reaped benefits from strategic acquisitions.
Nonetheless, it is to be noted that the firm is bearing the brunt of high SG&A costs over the last several quarters. However, it is expected that solid performance from its used vehicle segment, particularly the EchoPark business, might have offset the high costs in the quarter to be reported.
Earnings Whispers
Our proven model predicts an earnings beat for Sonic Automotive this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat.
You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Sonic Automotive has an Earnings ESP of +3.96% and a Zacks Rank #3.
You can see the complete list of today’s Zacks #1 Rank stocks here.
Other Stocks to Consider
Here are some other auto stocks, which, according to our model, have the right combination of elements to post an earnings beat in the to-be-reported quarter.
LKQ Corporation (LKQ - Free Report) is scheduled to report fourth-quarter results on Feb 20. The stock has an Earnings ESP of +1.68% and carries a Zacks Rank #3, currently.
Visteon Corporation (VC - Free Report) is set to release quarterly numbers on Feb 20. The company has an Earnings ESP of +2.63% and carries a Zacks Rank of 3, at present.
Magna International Inc. (MGA - Free Report) has an Earnings ESP of +3.34% and is a Zacks #3 Ranked player. The company is slated to report quarterly results on Feb 21.
Today's Best Stocks from Zacks
Would you like to see the updated picks from our best market-beating strategies? From 2017 through 2019, while the S&P 500 gained and impressive +53.6%, five of our strategies returned +65.8%, +97.1%, +118.0%, +175.7% and even +186.7%.
This outperformance has not just been a recent phenomenon. From 2000 – 2019, while the S&P averaged +6.0% per year, our top strategies averaged up to +54.7% per year.
See their latest picks free >>