Sonic Automotive Earnings: Everything You Must Know Now

Sonic Automotive Inc. (NYSE:SAH) delivered a profit and missed Wall Street’s expectations, AND came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company.

Sonic Automotive Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased 16.28% to $0.50 in the quarter versus EPS of $0.43 in the year-earlier quarter.

Revenue: Rose 0.79% to $2.2 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: Sonic Automotive Inc. reported adjusted EPS income of $0.50 per share. By that measure, the company missed the mean analyst estimate of $0.52. It missed the average revenue estimate of $2.28 billion.

Quoting Management: B. Scott Smith, the Company’s President, noted, “I’m pleased that we grew our earnings per share by more than 11% in the quarter despite our margin challenges associated with our True Price process execution. Our investment strategy remains the same. We continue to focus on investing in our base business, owning our real estate and strengthening our balance sheet.”

Key Stats (on next page)…

Revenue increased 5.73% from $2.08 billion in the previous quarter. EPS increased 21.95% from $0.41 in the previous quarter.

Looking Forward: Analysts have a more positive outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has risen from a profit of $0.49 to a profit $0.51. For the current year, the average estimate has moved up from a profit of $1.99 to a profit of $2.01 over the last ninety days.

Stocks with improving earnings metrics are worthy of your extra attention. In fact, “E = Earnings Are Increasing Quarter-Over-Quarter” is a core component of our CHEAT SHEET investing framework for this very reason. Don’t waste another minute – click here and get our CHEAT SHEET stock picks now.

(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at]