NYSE$SAH

Sonic Automotive Inc · Q3 2023 earnings

Q3 2023 earnings · · Investor relations

Briefing

Sonic Automotive reported record third quarter revenues and strategic adjustments to EchoPark business drove improvements in EchoPark segment unit sales volume and profitability.

Sonic Automotive reported record third quarter revenues of $3.6 billion, up 6% year-over-year. Net income was $68.4 million, down 22% year-over-year, with adjusted net income at $72.0 million, down 18% year-over-year. The company repurchased 1.7 million shares of Class A Common Stock during the quarter and increased its quarterly cash dividend by 3.4% to $0.30 per share.

  • Record third quarter revenues of $3.6 billion, up 6% year-over-year.
  • EchoPark Segment revenues increased by 6% year-over-year, with all-time record quarterly gross profit up 22% year-over-year.
  • Company repurchased 1.7 million shares of Class A Common Stock during the third quarter.
  • Board of Directors approved a 3.4% increase to the Company's quarterly cash dividend, to $0.30 per share.

Headline financials

Total Revenue

$3.64B

Previous: $3.45B+5.7%
EPS (adj)

$2.02

Previous: $2.23-9.4%
Capital Expenditures

-$78.1M

Previous: -$97.3M+19.7%
Free Cash Flow

-$9.7M

Previous: -$10M+3.0%
Net Income

$68.4M

Previous: $87.3M-21.6%
Operating Income

$137M

Previous: $149M-7.7%
Gross Profit

$582M

Previous: $581M+0.3%
Cash & Equivalents

$34.6M

Previous: $139M-75.1%
Total Assets

$5.05B

Previous: $4.83B+4.6%
Stock-Based Comp

$6.9M

Previous: $3.8M+81.6%

Revenue & EPS history

Sonic Automotive · Revenue · Quarterly

$3.64B

Q3 2023+5.7%vs Q3 2022
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 expects to return to breakeven EchoPark Segment adjusted EBITDA in the first quarter of 2024.

Tailwinds

  • Confident in path to breakeven EchoPark segment adjusted EBITDA in the first quarter of 2024.
  • Expect to resume disciplined long-term growth plans for EchoPark as used vehicle market conditions continue to improve.
  • Diversified cash flow streams continue to benefit overall financial position.
  • Well-positioned to adapt to evolving market conditions.
  • Positioned for success in 2024 and beyond.

Headwinds

  • Consumer affordability continues to be a challenge.
  • Used vehicle sourcing continues to be a challenge.
  • Margin normalization in the franchised dealership segment.
  • Ongoing expenses associated with the closed EchoPark stores of approximately $1.5 million to $2.0 million per quarter.
  • Economic conditions in the markets

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 2023

Historical avgQ3 2023

+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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