Earnings Outlook For Sonic Automotive

Sonic Automotive SAH is set to give its latest quarterly earnings report on Thursday, 2025-04-24. Here's what investors need to know before the announcement.

Analysts estimate that Sonic Automotive will report an earnings per share (EPS) of $1.35.

Investors in Sonic Automotive are eagerly awaiting the company's announcement, hoping for news of surpassing estimates and positive guidance for the next quarter.

It's worth noting for new investors that stock prices can be heavily influenced by future projections rather than just past performance.

Earnings History Snapshot

Last quarter the company beat EPS by $0.03, which was followed by a 2.48% increase in the share price the next day.

Here's a look at Sonic Automotive's past performance and the resulting price change:

Sonic Automotive Share Price Analysis

Shares of Sonic Automotive were trading at $59.75 as of April 22. Over the last 52-week period, shares are up 6.14%. Given that these returns are generally positive, long-term shareholders are likely bullish going into this earnings release.

Analyst Insights on Sonic Automotive

For investors, staying informed about market sentiments and expectations in the industry is paramount. This analysis provides an exploration of the latest insights on Sonic Automotive.

Analysts have given Sonic Automotive a total of 6 ratings, with the consensus rating being Outperform. The average one-year price target is $82.33, indicating a potential 37.79% upside.

Understanding Analyst Ratings Among Peers

The analysis below examines the analyst ratings and average 1-year price targets of and Advance Auto Parts, three significant industry players, providing valuable insights into their relative performance expectations and market positioning.

• Analysts currently favor an Neutral trajectory for Advance Auto Parts, with an average 1-year price target of $42.14, suggesting a potential 29.47% downside.

Peers Comparative Analysis Summary

The peer analysis summary outlines pivotal metrics for and Advance Auto Parts, demonstrating their respective standings within the industry and offering valuable insights into their market positions and comparative performance.

Key Takeaway:

Sonic Automotive outperforms its peers in revenue growth, with a growth rate of 8.68% compared to a decline of -0.91%. It also leads in gross profit at $573.90M. However, it lags behind in return on equity at 5.64% compared to -17.40%. Overall, Sonic Automotive ranks above its peers in revenue growth and gross profit, but falls behind in return on equity.

About Sonic Automotive

Sonic Automotive is one of the largest auto dealership groups in the United States. The company has 108 franchised stores in 18 states, primarily in metropolitan areas in California, Texas, and the Southeast, plus 18 EchoPark used-vehicle stores, 16 collision centers, and 15 powersports locations. The franchise stores derive revenue from new and used vehicles plus parts and collision repair, finance, insurance, and wholesale auctions. Luxury and import dealerships make up about 86% of franchise new-vehicle revenue, while Honda, BMW, Mercedes, and Toyota constitute about 59% of new-vehicle revenue. BMW is the largest brand at about 25%. 2024's revenue was $14.2 billion, with Texas and California comprising 51% of the total. EchoPark's portion was $2.1 billion.

Sonic Automotive's Financial Performance

Market Capitalization Analysis: Below industry benchmarks, the company's market capitalization reflects a smaller scale relative to peers. This could be attributed to factors such as growth expectations or operational capacity.

Revenue Growth: Sonic Automotive's revenue growth over a period of 3 months has been noteworthy. As of 31 December, 2024, the company achieved a revenue growth rate of approximately 8.68%. This indicates a substantial increase in the company's top-line earnings. As compared to its peers, the company achieved a growth rate higher than the average among peers in Consumer Discretionary sector.

Net Margin: Sonic Automotive's net margin surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive 1.5% net margin, the company effectively manages costs and achieves strong profitability.

Return on Equity (ROE): Sonic Automotive's ROE surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive 5.64% ROE, the company effectively utilizes shareholder equity capital.

Return on Assets (ROA): The company's ROA is a standout performer, exceeding industry averages. With an impressive ROA of 1.01%, the company showcases effective utilization of assets.

Debt Management: The company maintains a balanced debt approach with a debt-to-equity ratio below industry norms, standing at 3.89.

To track all earnings releases for Sonic Automotive visit their earnings calendar on our site.

This article was generated by Benzinga's automated content engine and reviewed by an editor.