Sonic Automotive Q2 revenue up 6% but misses estimates
Overview
Sonic Automotive Q2 revenue grows 6% but misses analyst expectations, per LSEG data
Adjusted EPS for Q2 beats analyst expectations, rising 49% yr/yr
Co reports net loss of $45.6 mln due to impairment charge
Outlook
Sonic expects $500 mln annualized revenue addition from 4 Jaguar Land Rover dealerships
Company notes uncertainty from tariffs affecting consumer demand and pricing
Result Drivers
IMPAIRMENT CHARGE - $172.4 mln non-cash pre-tax franchise asset impairment charge led to net loss
ECHO PARK PERFORMANCE - EchoPark Segment achieved record gross profit and adjusted EBITDA despite revenue decline
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q2 Revenue | Miss | $3.66 bln | $3.68 bln (8 Analysts) |
Q2 Adjusted EPS | Beat | $2.19 | $1.63 (6 Analysts) |
Q2 EPS | -$1.34 | ||
Q2 Net Income | -$45.60 mln |
Analyst Coverage
The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 4 "strong buy" or "buy", 4 "hold" and 1 "sell" or "strong sell"
The average consensus recommendation for the auto vehicles, parts & service retailers peer group is "buy."
Wall Street's median 12-month price target for Sonic Automotive Inc is $74.00, about 8% below its July 23 closing price of $79.95
The stock recently traded at 12 times the next 12-month earnings vs. a P/E of 9 three months ago
Press Release:
