NYSE$SAH

Sonic Automotive Inc · Q2 2024 earnings

Q2 2024 earnings · · Investor relations

Briefing

Reported financial results for the second quarter of 2024, with EchoPark achieving record adjusted EBITDA and the CDK Global software outage impacting GAAP income.

Sonic Automotive reported Q2 2024 financial results with total revenues of $3.5 billion, a 5% decrease year-over-year. Net income was $41.2 million, a 76% increase year-over-year. The results were impacted by the CDK Global software outage, which is estimated to have reduced GAAP income before taxes by approximately $30.0 million.

  • Total revenues decreased by 5% year-over-year to $3.5 billion, while total gross profit also declined by 5% year-over-year to $539.1 million.
  • Net income increased by 76% year-over-year to $41.2 million, or $1.18 earnings per diluted share, which is up 82% year-over-year.
  • EchoPark Segment revenues decreased by 14% year-over-year to $517.3 million, but achieved a record second quarter total gross profit of $51.1 million, up 91% year-over-year.
  • The CDK Global software outage is estimated to have reduced second quarter GAAP income before taxes by approximately $30.0 million, or $0.64 in diluted earnings per share.

Headline financials

Total Revenue

$3.45B

Previous: $3.65B-5.5%
EPS

$1.18

Previous: $1.83-35.5%
Franchised Dealerships Same Store Retail New Vehicle Gross Profit Per Unit

$3.6K

No prior period
Franchised Dealerships Same Store Retail Used Vehicle Gross Profit Per Unit

$1.54K

No prior period
F&I Gross Profit Per Retail Unit

$2.38K

No prior period
Capital Expenditures

-$48.8M

Previous: -$38.3M-27.4%
Free Cash Flow

-$7.6M

Previous: -$14.9M+49.0%
Net Income

$41.2M

Previous: $23.4M+76.1%
Operating Income

$108M

Previous: $78.3M+37.5%
Gross Profit

$539M

Previous: $569M-5.2%
Cash & Equivalents

$67.2M

Previous: $120M-43.9%
Total Assets

$5.8B

Previous: $5.08B+14.2%
Stock-Based Comp

$5.9M

Previous: $5.4M+9.3%

Revenue & EPS history

Sonic Automotive · Revenue · Quarterly

$3.45B

Q2 2024-5.5%vs Q2 2023
Beat estimate in 5 of 15 quarters(33%)
ActualEstimate

Revenue by segment

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

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

Forward guidance

Sonic Automotive maintains guidance for positive quarterly EchoPark Segment adjusted EBITDA for the remainder of 2024, which is expected to help mitigate the continuing effects of margin normalization in our Franchised Dealerships Segment on consolidated earnings potential.

Tailwinds

  • Continued progress in EchoPark Segment performance.
  • Expectation of continued growth in the second half of 2024 and beyond.
  • Team remains dedicated to delivering an outstanding guest experience.
  • Continued improvement in used vehicle business in both the Franchised Dealerships and EchoPark Segments.
  • Guidance for positive quarterly EchoPark Segment adjusted EBITDA for the remainder of 2024.

Headwinds

  • Operational challenges in the last 12 days of the second quarter due to the CDK Global software outage.
  • Experienced operational disruptions throughout July related to the functionality of certain CDK customer lead applications, inventory management applications and related third-party application integrations with CDK.
  • Estimate second quarter GAAP income before taxes was negatively impacted by approximately $30 million, or $0.64 in diluted earnings per share due to CDK outage.
  • Continuing effects of margin normalization in Franchised Dealerships Segment on consolidated earnings potential.
  • The ultimate impact of the CDK outage on the Company.

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 2024

Historical avgQ2 2024

+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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