NYSE$SAH

Sonic Automotive Inc · Q2 2021 earnings

Q2 2021 earnings · · Investor relations

Briefing

Reported all-time record quarterly revenues and earnings per share, driven by strong franchised dealership performance across all business lines and a fourth consecutive quarter of record EchoPark revenues and retail unit sales volume.

Sonic Automotive reported all-time record quarterly revenues of $3.4 billion, up 58.7% year-over-year, and earnings per share of $2.63. The company's performance was driven by strong franchised dealership performance across all business lines and a fourth consecutive quarter of record EchoPark revenues and retail unit sales volume.

  • All-time record quarterly revenues of $3.4 billion, up 58.7% year-over-year.
  • All-time record quarterly income from continuing operations before taxes of $151.0 million, up 303.4% year-over-year.
  • All-time record quarterly earnings from continuing operations of $114.0 million ($2.63 per diluted share).
  • All-time record quarterly EchoPark revenues of $595.6 million, up 88.9% year-over-year.

Headline financials

Total Revenue

$3.35B

Previous: $2.11B+58.7%
EPS (adj)

$2.63

Previous: $0.64+310.9%
Capital Expenditures

-$37.4M

Previous: -$41.9M+10.7%
Free Cash Flow

$76.4M

Previous: -$11.1M+786.1%
Net Income

$114M

Previous: $30.8M+269.7%
Operating Income

$165M

Previous: $53.5M+209.0%
Gross Profit

$511M

Previous: $307M+66.2%
Cash & Equivalents

$240M

Previous: $116M+107.1%
Total Assets

$3.66B

Previous: $3.6B+1.7%
Stock-Based Comp

$3.97M

Previous: $2.97M+33.8%

Revenue & EPS history

Sonic Automotive · Revenue · Quarterly

$3.35B

Q2 2021+58.7%vs Q2 2020
Beat estimate in 13 of 16 quarters(81%)
ActualEstimate

Revenue by segment

Sonic Automotive · $3.02B total across 2 segments · Q3 2023

  • Franchised Dealerships
    $2.96B+4.2%
  • Powersports
    $57M

Forward guidance

The company believes it can sustain its strong operating performance throughout the balance of 2021 and well into 2022 and is confident of attaining its goal of more than doubling total revenues to $25 billion by 2025 while continuing to significantly increase profitability.

Tailwinds

  • Increasing consumer demand
  • Success in maximizing operating efficiency at franchised dealerships
  • Continued expansion of the EchoPark brand
  • On track for a fourth quarter 2021 launch of new digital retail platform
  • Guest-centric EchoPark buying experience continues to drive market share gains

Headwinds

  • Economic conditions in the markets in which we operate
  • New and used vehicle industry sales volume
  • Anticipated future growth in our EchoPark Segment
  • Success of our operational strategies
  • The effect of the COVID-19 pandemic and related government-imposed restrictions on operations

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q2 2021

Historical avgQ2 2021

+1.0%

Avg return

Earnings day

+2.1%

Avg return

5 days after

+1.6%

Avg return

30 days after

46%

30 / 65 earnings

Positive

+30.2%

Q1 2019

Best reaction

-15.9%

Q3 2025

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+0.4%+7.5%+12.2%
Q4 2025+7.9%+7.7%+3.0%
Q3 2025-15.9%-17.4%-20.4%
Q1 2025+1.8%+3.9%+13.7%
Q4 2024-4.0%-1.8%-21.3%
Q3 2024+2.5%+6.1%+20.0%
Q2 2024+3.0%+7.0%+5.7%
Q1 2024+21.9%+13.1%+10.7%
Q4 2023-5.9%-8.3%-8.2%
Q3 2023+13.4%+10.4%+21.8%
Q2 2023-3.7%-2.9%+1.4%
Q1 2023-14.7%-16.8%-19.9%
Q4 2022-3.8%-2.1%-19.2%
Q3 2022+5.7%+8.1%+13.6%
Q2 2022+4.9%+3.5%+41.5%
Q1 2022-1.0%+8.9%+9.7%
Q4 2021+3.6%+3.4%-3.9%
Q3 2021-0.4%+1.8%-5.6%
Q2 2021+8.3%+8.4%+1.0%
Q1 2021-3.4%+3.9%-5.6%
Q4 2020-10.7%-1.6%+19.2%
Q3 2020-2.6%+4.9%+14.4%
Q2 2020-11.3%-6.8%+2.6%
Q1 2020+14.4%+12.8%+40.3%
Q4 2019-6.0%-3.7%-64.4%
Q3 2019+7.1%+10.4%+6.7%
Q2 2019+4.8%+6.5%-1.9%
Q1 2019+30.2%+27.6%+16.1%
Q4 2018-2.2%+0.6%-12.6%
Q3 2018+5.1%+6.2%-6.5%
Q2 2018+11.1%+10.6%+21.2%
Q1 2018-3.6%-2.9%+4.6%
Q4 2017-3.4%-5.4%-6.7%
Q3 2017+5.0%+6.8%+4.5%
Q2 2017-4.2%-8.7%-11.1%
Q1 2017-0.7%-4.4%-10.4%
Q4 2016+6.3%-4.8%-14.7%
Q3 2016-5.6%-5.6%+19.8%
Q2 2016-5.0%-5.3%-9.3%
Q1 2016+13.9%
Q4 2015+11.0%
Q3 2015+13.2%
Q2 2015-4.1%
Q1 2015+0.5%
Q4 2014-3.2%
Q3 2014-2.2%
Q2 2014-5.3%
Q1 2014+3.7%
Q4 2013+4.1%
Q3 2013-2.9%
Q2 2013-2.0%
Q1 2013+1.4%
Q4 2012-4.1%
Q3 2012+4.3%
Q2 2012+2.4%
Q1 2011-2.3%
Q1 2012+2.9%
Q2 2011-2.8%
Q4 2011-2.8%
Q4 2009-2.8%
Q3 2011-1.4%
Q3 2010-1.4%
Q4 2010-4.1%
Q2 2010-4.1%
Q1 2010+2.7%

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