Overview
U.S. automotive retailer's Q4 revenue missed analyst expectations
Adjusted EPS for Q4 beat analyst expectations
Company repurchased $38.3 mln worth of shares in Q4
Outlook
Company remains focused on operational excellence and cost control in 2026
Sonic Automotive emphasizes strategic investments for growth initiatives
Company aims to maintain flexibility in changing market conditions
Result Drivers
FRANCHISED DEALERSHIPS - Record gross profit driven by increased parts, service, and collision repair gross profit
ECHOPARK SEGMENT - Despite revenue decline, gross profit rose due to improved inventory and pricing strategies
POWERSPORTS SEGMENT - Significant growth in revenue and gross profit contributed to overall results
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q4 Revenue | Miss | $3.87 bln | $3.95 bln (7 Analysts) |
Q4 Adjusted EPS | Beat | $1.52 | $1.50 (8 Analysts) |
Q4 EPS | $1.36 | ||
Q4 Net Income | $46.90 mln |
Analyst Coverage
The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 4 "strong buy" or "buy", 5 "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 $77.50, about 33% above its February 17 closing price of $58.28
The stock recently traded at 8 times the next 12-month earnings vs. a P/E of 9 three months ago
Press Release: ID:nBw6ykbcNa
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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)