Sonic Automotive (SAH) Q2 Earnings & Revenues Beat Estimates

Sonic Automotive, Inc. (NYSE:SAH) registered adjusted earnings per share of 62 cents in second-quarter 2019, which beat the Zacks Consensus Estimate of 47 cents. Moreover, the bottom line increased from 35 cents reported in the year-ago quarter.

Total revenues in the reported quarter amounted to $2.6 billion, up from the prior-year quarter’s figure of $2.5 billion. Additionally, revenues surpassed the Zacks Consensus Estimate of $2.5 billion.

During the reported quarter, revenues from the sale of total new vehicles fell 2.7% year over year to $1.2 billion. Revenues from the sale of total used vehicles rose 16.1% to $885.6 million. Wholesale vehicle revenues declined 6.9% to $50 million on a year-over-year basis.

Revenues from parts, services and collision repair increased 2.5% year over year to $355.3 million. Finance, insurance and other revenues rose 13.7% on a year-over-year basis to $118.3 million.

In second-quarter 2019, gross profit increased to $381 million from $362.5 million in the year-ago quarter. Selling, general and administrative expenses increased to $294.5 million from $277 million in the year-ago quarter. The company recorded operating income of $62.9 million compared with $50.6 million in the year-ago quarter.

In the quarter under review, EchoPark stores retailed 12,587 units, up 68.7% on a year-over-year basis.

Dividend & Share Repurchase

The board of directors of Sonic Automotive announced a quarterly dividend of 10 cents per share. The dividend will be paid on Oct 15, 2019, to shareholders of record as of Sep 13.

Zacks Rank & Other Stocks to Consider

Currently, Sonic Automotive has a Zacks Rank #2 (Buy).

Some other stocks in the auto space are Copart, Inc (NASDAQ:CPRT) , CarMax, Inc (NYSE:KMX) and Advance Auto Parts, Inc (NYSE:AAP) . While Copart sports a Zacks Rank #1 (Strong Buy), CarMax and Advance Auto Parts carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Copart has an expected long-term growth rate of 20%. In the past year, shares of the company have rallied 39%.

CarMax has an expected long-term growth rate of 12.6%. In the past year, shares of the company have moved up 19.4%.

Advance Auto Parts has an expected long-term growth rate of 11.6%. In the past year, shares of the company have returned 7.3%.

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