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

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

Sonic Automotive Stock Down 1.0 %

SAH stock opened at $56.87 on Friday. The business’s 50-day moving average price is $57.66 and its 200-day moving average price is $56.62. Sonic Automotive has a twelve month low of $46.33 and a twelve month high of $64.68. The stock has a market cap of $1.94 billion, a P/E ratio of 10.51 and a beta of 1.60. 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 Increases Dividend

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

Wall Street Analyst Weigh In

A number of equities research analysts recently commented on the company. Stephens initiated coverage on Sonic Automotive in a research report on Thursday, September 12th. They issued an “equal weight” rating and a $64.00 price target for the company. Needham & Company LLC increased their price target on Sonic Automotive from $73.00 to $74.00 and gave the company a “buy” rating in a research report on Friday. JPMorgan Chase & Co. lifted their price target on shares of Sonic Automotive from $63.00 to $75.00 and gave the stock an “overweight” rating in a report on Tuesday, September 10th. Morgan Stanley raised Sonic Automotive from an “underweight” rating to an “equal weight” rating and raised their price target for the stock from $40.00 to $58.00 in a report on Wednesday, September 25th. Finally, Bank of America lowered their target price on shares of Sonic Automotive from $67.00 to $66.00 and set a “buy” rating on the stock in a research note on Monday, October 14th. Three equities research analysts have rated the stock with a hold rating and four have assigned a buy rating to the company. According to data from MarketBeat, the company currently has a consensus rating of “Moderate Buy” and a consensus 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.