Sonic Automotive (NYSE:SAH) will release its quarterly earnings report on Thursday, 2025-10-23. Here's a brief overview for investors ahead of the announcement.
Analysts anticipate Sonic Automotive to report an earnings per share (EPS) of $1.76.
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
The company's EPS beat by $0.58 in the last quarter, leading to a 4.48% increase in the share price on the following day.
Here's a look at Sonic Automotive's past performance and the resulting price change:
| Quarter | Q2 2025 | Q1 2025 | Q4 2024 | Q3 2024 |
|---|---|---|---|---|
| EPS Estimate | 1.61 | 1.44 | 1.48 | 1.43 |
| EPS Actual | 2.19 | 1.48 | 1.51 | 1.26 |
| Price Change % | 4.00 | 0.00 | 2.00 | -1.00 |
Performance of Sonic Automotive Shares
Shares of Sonic Automotive were trading at $77.49 as of October 21. Over the last 52-week period, shares are up 34.04%. Given that these returns are generally positive, long-term shareholders are likely bullish going into this earnings release.
Insights Shared by Analysts 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 8 ratings, with the consensus rating being Buy. The average one-year price target is $85.0, indicating a potential 9.69% upside.
Analyzing Analyst Ratings Among Peers
This comparison focuses on the analyst ratings and average 1-year price targets of Advance Auto Parts, Camping World Holdings and Valvoline, three major players in the industry, shedding light on 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 $56.97, suggesting a potential 26.48% downside.
- Analysts currently favor an Outperform trajectory for Camping World Holdings, with an average 1-year price target of $20.75, suggesting a potential 73.22% downside.
- Analysts currently favor an Outperform trajectory for Valvoline, with an average 1-year price target of $45.6, suggesting a potential 41.15% downside.
Key Findings: Peer Analysis Summary
In the peer analysis summary, key metrics for Advance Auto Parts, Camping World Holdings and Valvoline are highlighted, providing an understanding of their respective standings within the industry and offering insights into their market positions and comparative performance.
| Company | Consensus | Revenue Growth | Gross Profit | Return on Equity |
|---|---|---|---|---|
| Sonic Automotive | Buy | 5.91% | $602.20M | -4.30% |
| Advance Auto Parts | Neutral | -7.71% | $874M | 0.68% |
| Camping World Holdings | Outperform | 9.38% | $592.25M | 9.28% |
| Valvoline | Outperform | 4.18% | $177.60M | 20.10% |
Key Takeaway:
Sonic Automotive ranks at the top for Revenue Growth among its peers. It is at the bottom for Gross Profit and 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 14 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.
A Deep Dive into Sonic Automotive's Financials
Market Capitalization Analysis: Falling below industry benchmarks, the company's market capitalization reflects a reduced size compared to peers. This positioning may be influenced by factors such as growth expectations or operational capacity.
Positive Revenue Trend: Examining Sonic Automotive's financials over 3 months reveals a positive narrative. The company achieved a noteworthy revenue growth rate of 5.91% as of 30 June, 2025, showcasing a substantial increase in top-line earnings. When compared to others in the Consumer Discretionary sector, the company excelled with a growth rate higher than the average among peers.
Net Margin: The company's net margin is below industry benchmarks, signaling potential difficulties in achieving strong profitability. With a net margin of -1.25%, the company may need to address challenges in effective cost control.
Return on Equity (ROE): Sonic Automotive's ROE is below industry averages, indicating potential challenges in efficiently utilizing equity capital. With an ROE of -4.3%, the company may face hurdles in achieving optimal financial returns.
Return on Assets (ROA): Sonic Automotive's ROA falls below industry averages, indicating challenges in efficiently utilizing assets. With an ROA of -0.77%, the company may face hurdles in generating optimal returns from its assets.
Debt Management: Sonic Automotive's debt-to-equity ratio is notably higher than the industry average. With a ratio of 4.04, the company relies more heavily on borrowed funds, indicating a higher level of financial risk.
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.
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