Sonic Automotive Q3 Earnings Miss Expectations, Revenues Rise Y/Y

Sonic Automotive, Inc. SAH posted third-quarter 2025 adjusted earnings per share of $1.41, which lagged the Zacks Consensus Estimate of $1.82 but improved 11.9% from the year-ago quarter. Total revenues amounted to $4 billion, which surpassed the Zacks Consensus Estimate of $3.67 billion and rose from the year-ago quarter’s $3.5 billion.SAH’s Q3 in DetailOn a consolidated basis, revenues from the sales of new vehicles, used vehicles and wholesale vehicles totaled $1.9 billion (up 19% year over year), $1.25 billion (up 6% year over year) and $84.2 million (up 25%), respectively. Revenues from parts, service and collision repair were up 11% to $533.9 million. Finance, insurance and other revenues rose 16% year over year to $203.8 million. Total gross profit increased 13% to $615.5 million.In the Franchised Dealerships segment, revenues from the sales of new vehicles, used vehicles and wholesale vehicles totaled $1.86 billion (up 19% year over year), $796.7 million (up 14%) and $52.8 million (up 25%), respectively. Revenues from parts, service and collision repair increased 11% to $510.1 million. Finance, insurance and other revenues jumped 21% to $147.6 million. The segment’s same-store revenues rose 11% to more than $3 billion. Same-store retail units of new and used vehicles were 54,897, up 5% from the corresponding quarter of 2024.The EchoPark segment reported quarterly revenues of $522.5 million, down 4% year over year. Revenues comprised $439.2 million (down 7%) from used vehicle sales, $30.4 million (up 28%) from wholesale vehicle sales and $52.9 million (up 4%) from finance, insurance and other. Its stores sold 16,353 and 3,224 used and wholesale vehicle units, down 8% and up 19%, respectively, on a year-over-year basis.In the Powersports segment, revenues from the sale of new vehicles, used vehicles and wholesale vehicles totaled $38.8 million (up 44% year over year), $17.2 million (up 91%) and $1 million (down 9%), respectively. Revenues from parts, service and collision repair rose 18% to $23.8 million. Finance, insurance and other revenues were $3.3 million. The segment’s same-store revenues were up 35% to $78.3 million. Same-store retail units of new and used vehicles were 2,822, up 42% on a year-over-year basis.Sonic Automotive, Inc. Price, Consensus and EPS Surprise Sonic Automotive, Inc. price-consensus-eps-surprise-chart | Sonic Automotive, Inc. QuoteOther TidbitsIn the third quarter, Sonic Automotive’s selling, general and administrative expenses increased 15% year over year to 73.4% of gross profit. SAH had cash & cash equivalents of $89.4 million as of Sept. 30, 2025, up from $44 million as of Dec. 31, 2024. Long-term debt was $1.44 billion as of Sept. 30, 2025, down from $1.51 billion as of Dec. 31, 2024.Sonic Automotive announced a quarterly dividend of 38 cents per share, which will be paid out on Jan. 15, 2025, to its stockholders of record as of Dec. 15.Sonic’s Zacks Rank & Key PicksSAH carries a Zacks Rank #3 (Hold) at present.Some better-ranked stocks in the auto space are Cooper-Standard Holdings Inc. CPS, OPENLANE, Inc. KAR and Garrett Motion Inc. GTX, each sporting a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.The Zacks Consensus Estimate for CPS’ 2025 sales and earnings implies year-over-year growth of 2.5% and 137.8%, respectively. EPS estimates for 2025 and 2026 have improved 36 cents and 23 cents, respectively, in the past seven days.The Zacks Consensus Estimate for KAR’s fiscal 2025 sales and earnings implies year-over-year growth of 5.6% and 37.7%, respectively. EPS estimates for fiscal 2025 have improved 13 cents in the past 90 days. EPS estimates for fiscal 2026 have improved 13 cents in the past 30 days.The Zacks Consensus Estimate for GTX’s 2025 sales and earnings implies year-over-year growth of 1.8% and 10.3%, respectively. EPS estimates for 2025 and 2026 have improved 4 cents each in the past seven days. Zacks Names #1 Semiconductor StockThis under-the-radar company specializes in semiconductor products that titans like NVIDIA don't build. It's uniquely positioned to take advantage of the next growth stage of this market. And it's just beginning to enter the spotlight, which is exactly where you want to be.With strong earnings growth and an expanding customer base, it's positioned to feed the rampant demand for Artificial Intelligence, Machine Learning, and Internet of Things. Global semiconductor manufacturing is projected to explode from $452 billion in 2021 to $971 billion by 2028.See This Stock Now for Free >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Sonic Automotive, Inc. (SAH): Free Stock Analysis Report OPENLANE, Inc. (KAR): Free Stock Analysis Report Cooper-Standard Holdings Inc. (CPS): Free Stock Analysis Report Garrett Motion Inc. (GTX): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks