NYSE$SAH

Sonic Automotive Inc · Q3 2020 earnings

Q3 2020 earnings · · Investor relations

Briefing

Reported all-time record third quarter earnings driven by the strength and resilience of the business model, increasing consumer demand, and enhanced operating efficiency and profitability.

Sonic Automotive reported all-time record earnings for the third quarter of 2020. The company's business model demonstrated strength and resilience, leading to the highest third-quarter profit in company history. EchoPark achieved record quarterly revenues and retail sales volume. SG&A expenses decreased, and operating efficiency improved.

  • All-time record earnings per diluted share from continuing operations of $1.35, up 105% year-over-year.
  • SG&A expenses as a percentage of gross profit decreased to 68.3% compared to 76.7% in the prior year.
  • Total consolidated revenues reached $2.5 billion and gross profit was $376.6 million.
  • EchoPark revenues reached a record $385.1 million, up 23.3% year-over-year, with record retail sales volume of 15,127 units, up 14.5% year-over-year.

Headline financials

Total Revenue

$2.55B

Previous: $2.7B-5.7%
EPS (adj)

$1.29

Previous: $0.66+95.5%
Capital Expenditures

-$30.3M

Previous: -$74.5M+59.3%
Free Cash Flow

$29.5M

Previous: -$45.5M+164.8%
Net Income

$59.8M

Previous: $29M+106.2%
Operating Income

$96.4M

Previous: $65.2M+47.9%
Gross Profit

$377M

Previous: $387M-2.6%
Cash & Equivalents

$126M

Previous: $2.4M+5136.9%
Total Assets

$3.5B

Previous: $4.12B-14.9%
Stock-Based Comp

$3.15M

Previous: $2.68M+17.6%

Revenue & EPS history

Sonic Automotive · Revenue · Quarterly

$2.55B

Q3 2020-5.7%vs Q3 2019
Beat estimate in 14 of 16 quarters(88%)
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 did not provide specific forward guidance in this earnings report. However, they mentioned plans to more than double total revenues and dramatically increase profitability in the next five years through omni-channel experience and expansion of the EchoPark brand.

Tailwinds

  • Enhancing e-commerce platform for integrated online and on-site sales.
  • Expanding EchoPark brand nationally to a 140-point network.
  • Expecting EchoPark to retail over half a million pre-owned vehicles annually by 2025.
  • Increasing operating efficiency at franchised dealerships and EchoPark stores.
  • Ongoing cost-management initiatives resulting in a leaner, more efficient organization.

Headwinds

  • Economic conditions in operating markets could impact results.
  • Fluctuations in new and used vehicle industry sales volume.
  • Success of operational strategies is subject to uncertainty.
  • Overall economic expansion or contraction could affect performance.
  • COVID-19 pandemic and related restrictions could impact 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 Q3 2020

Historical avgQ3 2020

+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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