Sonic Automotive Stuns with Q2 Earnings Beat Despite Revenue Dip and Dealership Struggles: Details
Portfolio Pulse from Akanksha Bakshi
Sonic Automotive (NYSE:SAH) reported a Q2 revenue decline of 5.5% YoY to $3.453 billion, missing estimates. Despite this, the company beat EPS expectations with $1.47 per share. The Franchised Dealerships segment saw declines in same-store revenues and gross profit, while the EchoPark segment showed significant growth in gross profit and adjusted EBITDA. Operational disruptions due to a CDK outage negatively impacted GAAP income by $30 million. Sonic approved a quarterly dividend of $0.30 per share and maintained positive guidance for EchoPark's adjusted EBITDA for the rest of 2024. SAH shares traded lower by 2.31% premarket.
August 05, 2024 | 1:19 pm
News sentiment analysis
Sort by:
Ascending
NEUTRAL IMPACT
Sonic Automotive reported a Q2 revenue decline of 5.5% YoY to $3.453 billion, missing estimates. Despite this, the company beat EPS expectations with $1.47 per share. The Franchised Dealerships segment saw declines in same-store revenues and gross profit, while the EchoPark segment showed significant growth in gross profit and adjusted EBITDA. Operational disruptions due to a CDK outage negatively impacted GAAP income by $30 million. Sonic approved a quarterly dividend of $0.30 per share and maintained positive guidance for EchoPark's adjusted EBITDA for the rest of 2024. SAH shares traded lower by 2.31% premarket.
The mixed results, with a revenue miss but an EPS beat, create a neutral short-term outlook. The operational disruptions and revenue decline are negative, but the strong performance of the EchoPark segment and positive guidance balance this out.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100