Sonic Automotive (NYSE:SAH) Issues Earnings Results

Sonic Automotive (NYSE:SAH) released its earnings results on Thursday. The company reported $1.82 earnings per share for the quarter, beating analysts’ consensus estimates of $1.75 by $0.07, Zacks reports. Sonic Automotive had a net margin of 0.72% and a return on equity of 22.45%. The firm had revenue of $3.93 billion for the quarter, compared to analysts’ expectations of $3.78 billion. During the same period in the previous year, the company earned $2.19 earnings per share. The company’s quarterly revenue was up 7.6% on a year-over-year basis.

Here are the key takeaways from Sonic Automotive’s conference call:

• Record quarterly results: Second-quarter revenue reached $3.9 billion, up 8% year over year, while gross profit hit a record $616.2 million. Adjusted EPS was $1.82, compared with reported GAAP EPS of $1.79.
• Sonic raised its full-year new-vehicle gross profit per unit guidance to $2,850–$3,000, citing strong first-half performance despite expected tariff-related affordability pressure in the second half. Fixed operations also set a quarterly gross-profit record, supported by customer-pay and warranty work.
• EchoPark continued gaining volume and market reach: Revenue rose 15% and used retail unit volume increased 17% to 19,601 units, with July growth reportedly above 20%. Management expects 12%–15% full-year unit growth and plans to increase brand marketing later in the year, although store openings are being paced by construction timing.
• Powersports delivered substantial growth, with revenue up 53%, gross profit up 57%, and adjusted EBITDA up 145% year over year. Recently acquired Harley-Davidson dealerships are performing above expectations, and management cited a strong acquisition pipeline across Powersports and franchised dealerships.
• Management highlighted significant affordability challenges, including tariffs, new-vehicle prices approaching $60,000–$61,000, and rising monthly payments. These conditions may pressure new- and used-vehicle margins, but could support EchoPark demand and longer vehicle ownership, creating potential upside for fixed operations.

Sonic Automotive Stock Down 10.4%

Shares of SAH opened at $100.89 on Friday. The firm has a market cap of $3.19 billion, a P/E ratio of 32.13, a P/E/G ratio of 1.72 and a beta of 0.89. The stock has a 50 day simple moving average of $88.28 and a two-hundred day simple moving average of $73.83. The company has a debt-to-equity ratio of 1.93, a current ratio of 1.03 and a quick ratio of 0.29. Sonic Automotive has a 1 year low of $54.11 and a 1 year high of $113.67.

Sonic Automotive Dividend Announcement

The company also recently announced a quarterly dividend, which will be paid on Thursday, October 15th. Investors of record on Tuesday, September 15th will be given a $0.41 dividend. The ex-dividend date is Tuesday, September 15th. This represents a $1.64 dividend on an annualized basis and a yield of 1.6%. Sonic Automotive’s payout ratio is presently 52.23%.

Insider Buying and Selling

In other Sonic Automotive news, President Jeff Dyke sold 50,000 shares of Sonic Automotive stock in a transaction that occurred on Monday, June 8th. The shares were sold at an average price of $82.97, for a total transaction of $4,148,500.00. Following the transaction, the president directly owned 111,622 shares of the company’s stock, valued at approximately $9,261,277.34. This trade represents a 30.94% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 100,000 shares of company stock worth $8,408,160 in the last quarter. 43.68% of the stock is owned by company insiders.

Institutional Investors Weigh In On Sonic Automotive

A number of institutional investors have recently made changes to their positions in SAH. Mariner LLC purchased a new position in Sonic Automotive in the 4th quarter worth $311,000. Counterpoint Mutual Funds LLC bought a new position in shares of Sonic Automotive during the fourth quarter valued at about $302,000. Northwestern Mutual Wealth Management Co. grew its stake in shares of Sonic Automotive by 653.5% during the third quarter. Northwestern Mutual Wealth Management Co. now owns 3,293 shares of the company’s stock valued at $251,000 after buying an additional 2,856 shares during the last quarter. DRW Securities LLC bought a new stake in shares of Sonic Automotive in the 4th quarter valued at about $233,000. Finally, Creative Planning boosted its holdings in Sonic Automotive by 12.4% during the 3rd quarter. Creative Planning now owns 3,000 shares of the company’s stock valued at $228,000 after acquiring an additional 332 shares during the period. Hedge funds and other institutional investors own 46.92% of the company’s stock.

Sonic Automotive News Summary

Here are the key news stories impacting Sonic Automotive this week:

• Positive Sentiment: Second-quarter revenue increased 7.6% year over year to approximately $3.93 billion, exceeding the $3.78 billion analyst estimate. EPS of $1.82 also topped expectations of $1.75. Sonic Automotive Q2 Earnings and Revenues Beat Estimates
• Positive Sentiment: Sonic reported record quarterly total gross profit of $616.2 million, up 2% from a year earlier, indicating continued scale and demand despite operating pressures. Sonic Automotive Reports Second Quarter 2026 Financial Results
• Positive Sentiment: The company declared a quarterly dividend of $0.41 per share, payable October 15 to shareholders of record September 15. The annualized payout implies a yield of roughly 1.6%, providing modest shareholder-return support.
• Neutral Sentiment: Management’s second-quarter earnings call transcript provides additional commentary for investors assessing sales trends, dealership expenses and profitability following the results. Sonic Automotive Q2 2026 Earnings Call Transcript
• Negative Sentiment: Despite the earnings beat, EPS fell from $2.19 in the year-ago quarter to $1.82. Net margin was only 0.72%, and reports indicated dealership costs undermined profitability. This appears to be the main reason shares encountered selling pressure after the release. Sonic Automotive Shares Turn Negative as Profitability Undermined by Dealership Costs
• Negative Sentiment: At approximately $100.89, SAH trades well above its 50-day and 200-day moving averages and near its 12-month high, while its price-to-earnings ratio is about 32. Investors may therefore demand sustained earnings growth, making margin weakness more significant.

Wall Street Analysts Forecast Growth

A number of equities research analysts recently commented on the stock. Citigroup lifted their price target on shares of Sonic Automotive from $82.00 to $95.00 and gave the stock a “buy” rating in a report on Monday, May 11th. Zacks Research raised Sonic Automotive from a “strong sell” rating to a “hold” rating in a report on Tuesday, April 28th. Stephens set a $89.00 target price on Sonic Automotive in a research report on Monday, July 13th. JPMorgan Chase & Co. lowered their target price on Sonic Automotive from $77.00 to $76.00 and set an “underweight” rating on the stock in a research note on Monday, July 13th. Finally, Seaport Research Partners cut Sonic Automotive from a “buy” rating to a “neutral” rating and upped their price target for the company from $185.00 to $205.00 in a research report on Friday, July 17th. Five research analysts have rated the stock with a Buy rating, five have given a Hold rating and one has assigned a Sell rating to the stock. According to data from MarketBeat, the stock currently has a consensus rating of “Hold” and a consensus target price of $90.67.

Sonic Automotive Company Profile

Sonic Automotive, Inc is a publicly traded automotive retailer that operates a network of franchised new-car dealerships and used-vehicle dealerships across the United States. Headquartered in Charlotte, North Carolina, the company offers a range of services that include vehicle sales, leasing, finance and insurance products, service and parts, and collision repair. Sonic Automotive’s dealerships represent numerous major automotive brands, and the company also markets a broad selection of pre-owned vehicles under its own banner.

In addition to its core dealership operations, Sonic Automotive has developed digital retail capabilities that allow customers to research, shop and complete transactions online.