Sonic Automotive (NYSE:SAH) Issues Quarterly Earnings Results, Misses Expectations By $0.41 EPS

Key Points

• Sonic Automotive reported quarterly earnings of $1.41 per share, which missed analyst expectations by $0.41, despite revenue increasing by 13.8% year-over-year to $3.97 billion.
• Shares of Sonic Automotive fell by $10.77 to $67.07 after the earnings announcement, indicating a decline in market confidence following the earnings miss.
• Analysts have mixed ratings on Sonic Automotive, with a consensus rating of "Moderate Buy" and an average price target of $83.71, reflecting varied investor sentiment.

Sonic Automotive (NYSE:SAH - Get Free Report) announced its earnings results on Thursday. The company reported $1.41 earnings per share (EPS) for the quarter, missing the consensus estimate of $1.82 by ($0.41), Zacks reports. The business had revenue of $3.97 billion for the quarter, compared to the consensus estimate of $3.59 billion. Sonic Automotive had a net margin of 1.07% and a return on equity of 21.40%. The business's quarterly revenue was up 13.8% compared to the same quarter last year. During the same quarter last year, the firm posted $1.26 earnings per share.

Sonic Automotive Price Performance

Shares of NYSE:SAH traded down $10.77 during midday trading on Thursday, reaching $67.07. 170,689 shares of the company were exchanged, compared to its average volume of 216,197. The company has a current ratio of 1.03, a quick ratio of 0.24 and a debt-to-equity ratio of 1.78. The business's fifty day moving average is $78.39 and its two-hundred day moving average is $74.03. Sonic Automotive has a one year low of $52.00 and a one year high of $89.62. The stock has a market cap of $2.29 billion, a PE ratio of 14.84 and a beta of 0.95.

Hedge Funds Weigh In On Sonic Automotive

A number of hedge funds and other institutional investors have recently modified their holdings of the stock. Public Sector Pension Investment Board boosted its position in shares of Sonic Automotive by 6.5% during the second quarter. Public Sector Pension Investment Board now owns 49,359 shares of the company's stock worth $3,945,000 after acquiring an additional 3,024 shares during the last quarter. Tower Research Capital LLC TRC boosted its position in shares of Sonic Automotive by 578.4% during the second quarter. Tower Research Capital LLC TRC now owns 9,003 shares of the company's stock worth $720,000 after acquiring an additional 7,676 shares during the last quarter. Corient Private Wealth LLC raised its stake in Sonic Automotive by 98.5% during the second quarter. Corient Private Wealth LLC now owns 12,282 shares of the company's stock valued at $982,000 after purchasing an additional 6,094 shares in the last quarter. Man Group plc raised its stake in Sonic Automotive by 22.4% during the second quarter. Man Group plc now owns 18,032 shares of the company's stock valued at $1,441,000 after purchasing an additional 3,300 shares in the last quarter. Finally, BNP Paribas Financial Markets raised its stake in Sonic Automotive by 209.0% during the second quarter. BNP Paribas Financial Markets now owns 67,687 shares of the company's stock valued at $5,410,000 after purchasing an additional 45,784 shares in the last quarter. Institutional investors own 46.92% of the company's stock.

Analysts Set New Price Targets

Several analysts recently issued reports on SAH shares. Needham & Company LLC restated a "buy" rating and set a $95.00 target price on shares of Sonic Automotive in a research report on Thursday, October 2nd. Wall Street Zen lowered shares of Sonic Automotive from a "buy" rating to a "hold" rating in a research report on Saturday, October 18th. Stephens lowered shares of Sonic Automotive from an "overweight" rating to an "equal weight" rating and upped their price target for the stock from $72.00 to $82.00 in a research report on Thursday, July 17th. JPMorgan Chase & Co. upped their price target on shares of Sonic Automotive from $74.00 to $76.00 and gave the stock an "underweight" rating in a research report on Tuesday, October 14th. Finally, Zacks Research upgraded shares of Sonic Automotive from a "hold" rating to a "strong-buy" rating in a research report on Tuesday, September 23rd. Two research analysts have rated the stock with a Strong Buy rating, three have issued a Buy rating, four have issued a Hold rating and one has issued a Sell rating to the company's stock. According to MarketBeat.com, Sonic Automotive has a consensus rating of "Moderate Buy" and an average price target of $83.71.

About Sonic Automotive

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest and most accurate reporting. This story was reviewed by MarketBeat's editorial team prior to publication. Please send any questions or comments about this story to contact@marketbeat.com.