Sonic Automotive (NYSE:SAH) Posts Earnings Results, Beats Expectations By $0.56 EPS

Key Points

• Sonic Automotive reported a quarterly EPS of $2.19, exceeding estimates by $0.56, while its revenue was $3.66 billion, reflecting a 5.9% increase year-over-year.
• The company announced an increased quarterly dividend of $0.38, with a yield of 1.93%, scheduled for payment on October 15th.
• Goldman Sachs and Needham & Company both raised their price targets for Sonic Automotive, with the new targets set at $94.00 and $95.00, respectively, reflecting growing analyst confidence in the stock.

Sonic Automotive (NYSE:SAH - Get Free Report) announced its quarterly earnings data on Thursday. The company reported $2.19 earnings per share for the quarter, topping the consensus estimate of $1.63 by $0.56, Zacks reports. Sonic Automotive had a return on equity of 21.40% and a net margin of 1.07%. The company had revenue of $3.66 billion for the quarter, compared to analyst estimates of $3.66 billion. During the same quarter last year, the firm earned $1.47 EPS. Sonic Automotive's revenue for the quarter was up 5.9% compared to the same quarter last year.

Sonic Automotive Price Performance

Shares of SAH stock traded down $1.63 during trading hours on Wednesday, reaching $72.13. 365,026 shares of the company were exchanged, compared to its average volume of 229,757. The stock's fifty day moving average is $77.71 and its two-hundred day moving average is $69.64. Sonic Automotive has a fifty-two week low of $52.00 and a fifty-two week high of $89.62. The company has a debt-to-equity ratio of 1.78, a current ratio of 1.03 and a quick ratio of 0.24. The company has a market cap of $2.45 billion, a price-to-earnings ratio of 16.03 and a beta of 1.04.

Sonic Automotive Increases Dividend

The business also recently announced a quarterly dividend, which will be paid on Wednesday, October 15th. Stockholders of record on Monday, September 15th will be given a dividend of $0.38 per share. This represents a $1.52 dividend on an annualized basis and a dividend yield of 2.11%. This is a positive change from Sonic Automotive's previous quarterly dividend of $0.35. The ex-dividend date is Monday, September 15th. Sonic Automotive's dividend payout ratio is presently 33.78%.

Insider Activity

In other Sonic Automotive news, President Jeff Dyke sold 31,152 shares of the company's stock in a transaction dated Friday, May 30th. The shares were sold at an average price of $70.05, for a total transaction of $2,182,197.60. Following the transaction, the president directly owned 605,969 shares in the company, valued at approximately $42,448,128.45. This represents a 4.89% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Insiders sold a total of 50,000 shares of company stock worth $3,502,062 over the last quarter. Corporate insiders own 42.65% of the company's stock.

Hedge Funds Weigh In On Sonic Automotive

Large investors have recently bought and sold shares of the business. Jane Street Group LLC lifted its stake in shares of Sonic Automotive by 263.4% in the 1st quarter. Jane Street Group LLC now owns 62,908 shares of the company's stock valued at $3,583,000 after purchasing an additional 45,596 shares during the period. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC lifted its stake in Sonic Automotive by 15.8% in the first quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 38,698 shares of the company's stock valued at $2,204,000 after buying an additional 5,286 shares during the period. Goldman Sachs Group Inc. lifted its stake in Sonic Automotive by 124.9% in the first quarter. Goldman Sachs Group Inc. now owns 355,328 shares of the company's stock valued at $20,239,000 after buying an additional 197,336 shares during the period. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. lifted its stake in Sonic Automotive by 5.8% in the first quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 8,853 shares of the company's stock valued at $504,000 after buying an additional 483 shares during the period. Finally, AQR Capital Management LLC lifted its stake in Sonic Automotive by 13.6% in the first quarter. AQR Capital Management LLC now owns 23,310 shares of the company's stock valued at $1,328,000 after buying an additional 2,793 shares during the period. 46.92% of the stock is currently owned by institutional investors and hedge funds.

Wall Street Analyst Weigh In

A number of research firms have weighed in on SAH. JPMorgan Chase & Co. reiterated an "underweight" rating and set a $72.00 price target (up previously from $65.00) on shares of Sonic Automotive in a research note on Thursday, July 17th. Wall Street Zen downgraded Sonic Automotive from a "strong-buy" rating to a "buy" rating in a report on Saturday, June 21st. Stephens lowered Sonic Automotive from an "overweight" rating to an "equal weight" rating and boosted their price target for the company from $72.00 to $82.00 in a research note on Thursday, July 17th. Benchmark boosted their price target on Sonic Automotive from $76.00 to $80.00 and gave the company a "buy" rating in a research note on Friday, July 25th. Finally, Citigroup started coverage on shares of Sonic Automotive in a research note on Wednesday, April 23rd. They issued a "neutral" rating and a $64.00 target price on the stock. One analyst has rated the stock with a sell rating, three have given a hold rating, four have issued a buy rating and one has given a strong buy rating to the company. According to MarketBeat, the company currently has a consensus rating of "Moderate Buy" and a consensus price target of $77.86.

Sonic Automotive Company Profile

Sonic Automotive, Inc operates as an automotive retailer in the United States. It operates in three segments, Franchised Dealerships, EchoPark, and Powersports. The Franchised Dealerships segment is involved in the sale of new and used cars and light trucks, and replacement parts; provision of vehicle maintenance, manufacturer warranty repair, and paint and collision repair services; and arrangement of extended warranties, service contracts, financing, insurance, and other aftermarket products for its guests.