Sonic Automotive (NYSE:SAH) Announces Earnings Results, Misses Expectations By $0.17 EPS

Sonic Automotive (NYSE:SAH) announced its earnings results on Thursday. The company reported $1.26 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $1.43 by ($0.17), Zacks reports. Sonic Automotive had a net margin of 1.35% and a return on equity of 25.31%. The firm had revenue of $3.49 billion during the quarter, compared to analyst estimates of $3.55 billion. During the same period in the prior year, the business posted $2.02 EPS. The firm’s quarterly revenue was down 4.2% compared to the same quarter last year.

Sonic Automotive Stock Performance

Shares of NYSE SAH traded down $0.57 during midday trading on Friday, hitting $56.87. 223,432 shares of the company’s stock were exchanged, compared to its average volume of 197,074. The company has a quick ratio of 0.36, a current ratio of 1.10 and a debt-to-equity ratio of 2.04. Sonic Automotive has a 12 month low of $46.33 and a 12 month high of $64.68. The company’s 50 day moving average price is $57.74 and its 200 day moving average price is $56.57. The firm has a market capitalization of $1.94 billion, a PE ratio of 10.49 and a beta of 1.60.

Sonic Automotive Increases Dividend

The firm also recently announced a quarterly dividend, which will be paid on Wednesday, January 15th. Stockholders of record on Friday, December 13th will be paid a dividend of $0.35 per share. This is an increase from Sonic Automotive’s previous quarterly dividend of $0.30. This represents a $1.40 annualized dividend and a dividend yield of 2.46%. The ex-dividend date is Friday, December 13th. Sonic Automotive’s payout ratio is currently 22.18%.

Analyst Ratings Changes

SAH has been the topic of a number of recent research reports. Morgan Stanley raised Sonic Automotive from an “underweight” rating to an “equal weight” rating and lifted their target price for the company from $40.00 to $58.00 in a research report on Wednesday, September 25th. Stephens assumed coverage on Sonic Automotive in a research report on Thursday, September 12th. They set an “equal weight” rating and a $64.00 price target on the stock. Needham & Company LLC boosted their price target on Sonic Automotive from $73.00 to $74.00 and gave the stock a “buy” rating in a research report on Friday. JPMorgan Chase & Co. boosted their price target on Sonic Automotive from $63.00 to $75.00 and gave the stock an “overweight” rating in a research report on Tuesday, September 10th. Finally, Bank of America lowered their price target on Sonic Automotive from $67.00 to $66.00 and set a “buy” rating on the stock in a research report on Monday, October 14th. Three analysts have rated the stock with a hold rating and four have given a buy rating to the company’s stock. According to data from MarketBeat.com, the company has a consensus rating of “Moderate Buy” and an average target price of $66.50.

Sonic Automotive Company Profile

Sonic Automotive, Inc operates as an automotive retailer in the United States. It operates in three segments, Franchised Dealerships, EchoPark, and Powersports. The Franchised Dealerships segment is involved in the sale of new and used cars and light trucks, and replacement parts; provision of vehicle maintenance, manufacturer warranty repair, and paint and collision repair services; and arrangement of extended warranties, service contracts, financing, insurance, and other aftermarket products for its guests.