Sonic Automotive Q3 revenue hits record but slightly misses estimates
Overview
US auto retailer reported record high Q3 revenue, but slightly missed analysts' expectations
Adjusted EPS for Q3 fell 8% yr/yr to $1.30
Company raised quarterly dividend to $0.41 per share
Outlook
Company did not provide specific financial guidance for the current quarter or full year in its press release
Result Drivers
ECHO PARK GROWTH - 22% increase in EchoPark segment retail used vehicle unit sales volume drove record segment gross profit
POWERSPORTS PERFORMANCE - Record unit sales at Sturgis Motorcycle Rally and integration of acquisitions drove all-time record segment revenues and income
FRANCHISED DEALERSHIP DECLINES - Company cited challenging consumer affordability environment and lower new vehicle sales in Franchised Dealerships segment
Company press release:
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q3 Revenue | Slight Miss* | $3.99 bln | $4.03 bln (9 Analysts) |
Q3 EPS | $1.28 | ||
Q3 Net Income | $41.10 mln |
*Applies to a deviation of less than 1%; not applicable for per-share numbers.
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 6 "strong buy" or "buy", 5 "hold" and 2 "sell" or "strong sell"
The average consensus recommendation for the auto vehicles, parts & service retailers peer group is "buy"
Wall Street's median 12-month price target for Sonic Automotive Inc is $75.00, about 18.8% above its October 28 closing price of $63.12
The stock recently traded at 9 times the next 12-month earnings vs. a P/E of 12 three months ago
Reuters Recommended Reads
Oct 27 - Asbury Automotive Q3 revenue misses estimates
Oct 28 - Group 1 Automotive Q3 revenue falls 6.7%, misses estimates
Oct 28 - Penske Q3 revenue tops estimates on used vehicle demand
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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)