Sonic Automotive (NYSE:SAH) Posts Earnings Results

Key Points

• Record Q1 results: Sonic reported record total revenue of $3.7 billion and record gross profit of $598.8 million with adjusted EPS of $1.62 (up 9% YoY) but missed analysts' consensus by $0.08.
• Operations & shareholder returns: EchoPark delivered all‑time record segment income and adjusted EBITDA while fixed operations and F&I drove over 75% of gross profit; the company finished the quarter with $770 million in available liquidity, repurchased ~2.1M shares (~$136M), received a $500M buyback authorization and raised the quarterly dividend 8% to $0.41.
• Near‑term risks: Same‑store revenues declined 4% and new retail volume fell 10%, with management warning that tariffs and wholesale spread pressures could compress future volumes and margins; the stock nevertheless traded up ~7.5% to $78.78 after the results.

Sonic Automotive (NYSE:SAH - Get Free Report) announced its quarterly earnings results on Thursday. The company reported $1.62 earnings per share for the quarter, missing analysts' consensus estimates of $1.70 by ($0.08), Zacks reports. Sonic Automotive had a net margin of 0.78% and a return on equity of 21.54%. The business's revenue for the quarter was up 1.0% compared to the same quarter last year. During the same quarter last year, the business posted $1.48 earnings per share.

Here are the key takeaways from Sonic Automotive's conference call:

• Record Q1 results: Sonic reported record total revenue of $3.7 billion (+1% YoY) and record total gross profit of $598.8 million (+6% YoY), with adjusted EPS of $1.62 per share (up 9%).
• EchoPark momentum: EchoPark delivered all-time record adjusted segment income ($12.6M, +25%) and adjusted EBITDA ($18.6M, +18%), grew revenue to $581M (+4%), and plans disciplined store reopenings late 2026 plus a $10–20M brand marketing push this year.
• High-margin services driving results: Fixed operations and F&I set quarterly records and together accounted for over 75% of total gross profit, providing margin resilience and better SG&A leverage despite softer new-vehicle activity.
• Strong balance sheet and shareholder returns: The company finished the quarter with $770M in available liquidity, repurchased ~2.1M shares (~$136M), received a $500M additional buyback authorization, and raised the quarterly dividend 8% to $0.41.
• Volume and macro uncertainty: Same-store revenues decreased 4% as new retail volume fell 10% (partly due to prior-year tariff pull‑forwards), same-store new GPU declined 4%, and management flagged ongoing tariff and wholesale spread risks that could pressure future volumes and margins.

Sonic Automotive Stock Up 7.5%

SAH stock traded up $5.47 during trading on Thursday, reaching $78.78. The stock had a trading volume of 455,964 shares, compared to its average volume of 276,796. Sonic Automotive has a 1-year low of $54.11 and a 1-year high of $89.62. The company has a current ratio of 1.09, a quick ratio of 0.32 and a debt-to-equity ratio of 1.80. The company has a market capitalization of $2.65 billion, a P/E ratio of 23.24, a PEG ratio of 2.10 and a beta of 0.82. The firm has a fifty day moving average price of $65.25 and a 200 day moving average price of $64.36.

Sonic Automotive Increases Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Wednesday, July 15th. Shareholders of record on Monday, June 15th will be issued a $0.41 dividend. The ex-dividend date is Monday, June 15th. This represents a $1.64 dividend on an annualized basis and a yield of 2.1%. This is an increase from Sonic Automotive's previous quarterly dividend of $0.38. Sonic Automotive's dividend payout ratio (DPR) is presently 44.84%.

Insider Activity

In related news, major shareholder Paul P. Rusnak bought 11,481 shares of the business's stock in a transaction dated Tuesday, February 17th. The shares were acquired at an average price of $59.95 per share, for a total transaction of $688,285.95. Following the purchase, the insider owned 5,100,000 shares in the company, valued at $305,745,000. This trade represents a 0.23% increase in their position. The transaction was disclosed in a filing with the SEC, which can be accessed through this link. In the last quarter, insiders have bought 100,000 shares of company stock valued at $5,994,472. Corporate insiders own 43.68% of the company's stock.

Institutional Investors Weigh In On Sonic Automotive

A number of institutional investors have recently modified their holdings of SAH. Royal Bank of Canada raised its stake in shares of Sonic Automotive by 37.1% in the 1st quarter. Royal Bank of Canada now owns 13,946 shares of the company's stock valued at $795,000 after purchasing an additional 3,777 shares in the last quarter. AQR Capital Management LLC raised its stake in shares of Sonic Automotive by 13.6% in the 1st quarter. AQR Capital Management LLC now owns 23,310 shares of the company's stock valued at $1,328,000 after purchasing an additional 2,793 shares in the last quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. raised its stake in shares of Sonic Automotive by 5.8% in the 1st quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 8,853 shares of the company's stock valued at $504,000 after purchasing an additional 483 shares in the last quarter. Goldman Sachs Group Inc. raised its stake in shares of Sonic Automotive by 124.9% in the 1st quarter. Goldman Sachs Group Inc. now owns 355,328 shares of the company's stock valued at $20,239,000 after purchasing an additional 197,336 shares in the last quarter. Finally, UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC raised its stake in shares of Sonic Automotive by 15.8% in the 1st 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 purchasing an additional 5,286 shares in the last quarter. Institutional investors and hedge funds own 46.92% of the company's stock.

Analyst Ratings Changes

Several equities analysts recently weighed in on SAH shares. Bank of America started coverage on shares of Sonic Automotive in a report on Wednesday, March 4th. They set a "neutral" rating on the stock. Wall Street Zen lowered shares of Sonic Automotive from a "buy" rating to a "hold" rating in a report on Sunday, January 11th. JPMorgan Chase & Co. lifted their target price on shares of Sonic Automotive from $65.00 to $67.00 and gave the company an "underweight" rating in a report on Friday, April 17th. Barclays set a $67.00 target price on shares of Sonic Automotive in a report on Monday, February 23rd. Finally, Needham & Company LLC restated a "buy" rating and set a $90.00 target price on shares of Sonic Automotive in a report on Tuesday, March 31st. Three analysts have rated the stock with a Buy rating, six have assigned a Hold rating and one has issued a Sell rating to the company's stock. Based on data from MarketBeat, the stock has an average rating of "Hold" and an average target price of $77.50.

Sonic Automotive Company Profile

Sonic Automotive, Inc is a publicly traded automotive retailer that operates a network of franchised new-car dealerships and used-vehicle dealerships across the United States. Headquartered in Charlotte, North Carolina, the company offers a range of services that include vehicle sales, leasing, finance and insurance products, service and parts, and collision repair. Sonic Automotive's dealerships represent numerous major automotive brands, and the company also markets a broad selection of pre-owned vehicles under its own banner.

In addition to its core dealership operations, Sonic Automotive has developed digital retail capabilities that allow customers to research, shop and complete transactions online.

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