Sonic Automotive (NYSE:SAH) Announces Quarterly Earnings Results, Misses Estimates By $0.17 EPS

Sonic Automotive (NYSE:SAH) posted its quarterly earnings results on Thursday. The company reported $1.26 EPS for the quarter, missing analysts’ consensus estimates of $1.43 by ($0.17), Zacks reports. The business had revenue of $3.49 billion for the quarter, compared to the consensus estimate of $3.55 billion. Sonic Automotive had a net margin of 1.35% and a return on equity of 25.31%. Sonic Automotive’s revenue was down 4.2% compared to the same quarter last year. During the same period in the prior year, the business earned $2.02 earnings per share.

Sonic Automotive Price Performance

Shares of SAH stock opened at $56.87 on Friday. The stock has a 50 day moving average price of $57.66 and a 200 day moving average price of $56.60. Sonic Automotive has a 52-week low of $46.33 and a 52-week high of $64.68. The company has a debt-to-equity ratio of 2.04, a quick ratio of 0.36 and a current ratio of 1.10. The firm has a market capitalization of $1.94 billion, a P/E ratio of 10.52 and a beta of 1.60.

Sonic Automotive Increases Dividend

The firm also recently announced a quarterly dividend, which will be paid on Wednesday, January 15th. Stockholders of record on Friday, December 13th will be paid a dividend of $0.35 per share. This is a boost from Sonic Automotive’s previous quarterly dividend of $0.30. The ex-dividend date is Friday, December 13th. This represents a $1.40 dividend on an annualized basis and a dividend yield of 2.46%. Sonic Automotive’s dividend payout ratio is currently 22.18%.

Analyst Upgrades and Downgrades

SAH has been the topic of several research analyst reports. Bank of America lowered their target price on shares of Sonic Automotive from $67.00 to $66.00 and set a “buy” rating on the stock in a report on Monday, October 14th. JPMorgan Chase & Co. raised their price target on Sonic Automotive from $63.00 to $75.00 and gave the company an “overweight” rating in a report on Tuesday, September 10th. Needham & Company LLC raised their target price on shares of Sonic Automotive from $73.00 to $74.00 and gave the company a “buy” rating in a report on Friday. Stephens initiated coverage on shares of Sonic Automotive in a research report on Thursday, September 12th. They set an “equal weight” rating and a $64.00 price objective for the company. Finally, Morgan Stanley upgraded shares of Sonic Automotive from an “underweight” rating to an “equal weight” rating and upped their target price for the company from $40.00 to $58.00 in a research report on Wednesday, September 25th. Three equities research analysts have rated the stock with a hold rating and four have given a buy rating to the stock. Based on data from MarketBeat, the stock has an average rating of “Moderate Buy” and an average price target of $66.50.

Sonic Automotive Company Profile

Sonic Automotive, Inc operates as an automotive retailer in the United States. It operates in three segments, Franchised Dealerships, EchoPark, and Powersports. The Franchised Dealerships segment is involved in the sale of new and used cars and light trucks, and replacement parts; provision of vehicle maintenance, manufacturer warranty repair, and paint and collision repair services; and arrangement of extended warranties, service contracts, financing, insurance, and other aftermarket products for its guests.