What guidance did Sonic Automotive's management provide for the next earnings period?

What were the key takeaways from Sonic Automotive’s earnings call?

What is the market's earnings forecast for Sonic Automotive next quarter?

Did Sonic Automotive beat or miss consensus estimates last quarter?

What does Sonic Automotive do and what are its main business segments?

What were the key takeaways from Sonic Automotive's earnings call?

What is Sonic Automotive's gross profit margin?

What is the revenue and EPS growth rate for Sonic Automotive year over year?

- **Record Growth**: Q3 revenue $4B (14% YoY), EBITDA $1.41 EPS (12% growth), driven by franchise F&I and fixed ops.
- **EV Margin Headwinds**: 11.9% EV mix caused $100 GPU decline; Q4 EV volume expected to halve.
- **Powersports Surge**: 42% YoY revenue growth, targeting industry consolidation at lower multiples.
- **EchoPark Reset**: 2026 expansion plans after addressing $24M inventory gap; focusing on off-lease sourcing.
- **Medical Costs**: $31M YoY increase resolved; Q4 guidance for stable expenses.

**【CEO Opening Remarks】**
- **Record Q3 Performance**: GAAP EPS of $1.33, adjusted EPS of $1.41 (12% YoY growth). Consolidated revenue reached $4B (14% YoY), with gross profit up 13% and EBITDA up 11%.
- **Franchise Strength**: Franchise revenues $3.4B (17% YoY), driven by 7% same-store new volume growth and 6% fixed ops increase. F&I GPU hit $2,597 (11% YoY), mitigating EV margin pressure.
- **EchoPark Challenges**: Adjusted EBITDA $8.2M (down 8% YoY) due to 2,000 unit shortfall from rental car supply disruption. Powersports segment set records with $84M revenue (42% YoY) and $10.1M EBITDA.
- **Balance Sheet**: $815M liquidity, completing JLR acquisitions to become U.S. leader. Dividend increased to $0.38/share.

**【CFO Financial Commentary】**
- **Medical Expense Impact**: Q3 medical costs rose $31M (YoY), driving $0.10 EPS dilution. Q4 guidance for flat medical costs at $72.8M SG&A.
- **Segment Margins**: Franchise F&I GPU $2,597 (down 5% QoQ due to EV mix). Used GPU $1,530 (down 4% QoQ). Powersports GPU at record levels.
- **Tariff Resilience**: High-margin fixed ops (75% of gross profit) offset vehicle margin pressure. Technician headcount growth driving customer pay gains.

**【Q&A Highlights】**
- **Used Car Market Dynamics**: Franchise cost of sales reduced to $34K (targeting $30K). EchoPark buying $24K+ off-lease vehicles to offset auction reliance.
- **EV Impact**: Q3 EV sales 11.9% mix (vs. 8.3% Q2), causing $100 front-end GPU decline. Q4 EV volume expected to drop 50% post-tax credit expiration.
- **Powersports Growth**: 2025 Sturgis rally record with 1,105 motorcycle sales. Used vehicle sales up 70% YoY. Viewing industry as 1990s automotive with low consolidation.
- **Tariff Outlook**: No material pricing impact yet, but monitoring manufacturer production shifts.
- **EchoPark Recovery**: 2026 store openings contingent on inventory normalization. Non-auction sourcing to improve affordability and margins.

Sonic Automotive, Inc. (SAH) Q3 2025 Earnings Call Transcript

- **Revenue Record**: Q2 revenue of $3.1B (+6% YoY) driven by new vehicle sales and fixed operations growth.
- **EchoPark Surge**: Segment EBITDA up 128% YoY to $16.4M, with GPU of $3,747 (+$669 YoY).
- **F&I Margin Boost**: F&I GPU of $2,721 (+14% YoY) via cost renegotiations, not volume growth.
- **Dividend Hike**: 9% increase to $0.38/share, signaling cash flow confidence.
- **Used Inventory Relief**: 2026 lease return uptick expected to ease used vehicle supply constraints.

**【CEO Opening Remarks】**
- **Record Q2 Revenue**: Consolidated total revenues reached $3.1 billion, up 6% YoY, driven by a 5% increase in same-store new retail volume and 10% growth in fixed operations.
- **Adjusted EPS Growth**: Adjusted EPS of $2.19 (up 49% YoY) exceeded expectations, despite a $1.34 GAAP loss due to noncash impairment charges.
- **Franchised Dealerships Strength**: Fixed operations gross profit rose 12% YoY, F&I GPU hit $2,721 (14% YoY), and used GPU increased 2% sequentially to $1,590.
- **EchoPark Momentum**: Segment income reached $11.7 million (128% YoY), with GPU of $3,747 (up $669 YoY) and 1% volume growth.
- **Powersports Expansion**: Revenues grew 21% YoY to $48.1 million, with plans to leverage the 85th Sturgis Motorcycle Rally for Q3 growth.
- **Balance Sheet Strength**: $775 million in available liquidity, including $210 million in cash, supported the acquisition of 4 Jaguar/Land Rover dealerships.
- **Dividend Increase**: Board approved a 9% hike to $0.38 per share, reflecting confidence in cash flow stability.

**【CFO Financial Commentary】**
- **GAAP vs. Non-GAAP**: GAAP net loss of $1.34 per share vs. Non-GAAP EPS of $2.19, highlighting operational efficiency.
- **Gross Profit Growth**: Consolidated gross profit up 12% YoY, with fixed operations and F&I contributing 75% of total gross profit.
- **Liquidity Management**: $775 million in available liquidity (including $210M cash) enabled strategic M&A without impacting Q2 results.

**【Q&A Key Highlights】**
- **Tariff Impact**: Pre-tariff buying surge boosted Q2 new GPU to $3,391 (up 10% sequentially), but July sales rebounded despite tariff uncertainty.
- **EchoPark Strategy**: Focused on margin preservation (128% YoY EBITDA growth) via disciplined inventory management, with SG&A leverage improving 110bps QoQ.
- **F&I Optimization**: Cost renegotiations reduced partner margins, driving F&I GPU to $2,721 (14% YoY) without volume growth.
- **Used Inventory Outlook**: Lease return trough in 2025 expected to ease in 2026, with EchoPark off-street purchases doubling to 40% of mix.
- **Powersports Seasonality**: Q3 rally-driven growth expected to offset Q2's 13% EBITDA decline, with modernization efforts bearing fruit.


Sonic Automotive, Inc. (SAH) Q2 2025 Earnings Call Transcript

- **Revenue Records**: Franchised Dealerships revenue up 9% YoY, EchoPark EBITDA surging 116% YoY.
- **EchoPark Resilience**: 35% off-street inventory drives $3,411/unit GPU, 400+ sales/month in new Houston store.
- **Tariff Adaptation**: No price gouging; EchoPark reduces auction reliance, Franchised Dealerships balance warranty/customer pay in Q2.
- **Liquidity & Dividends**: $947M liquidity, $0.35 quarterly dividend declared amid tariff uncertainty.

**【CEO Summary Section】**
- **Record First Quarter Performance**: GAAP EPS of $2.04, adjusted EPS of $1.48 (9% YoY increase). Franchised Dealerships revenue reached $3.1 billion (9% YoY), driven by 11% new vehicle sales growth and 6% fixed operations expansion.
- **EchoPark Momentum**: Segment income of $10.3 million (116% YoY), adjusted EBITDA of $15.8 million (record). Used vehicle GPU hit $3,411/unit (up $456 YoY), supported by 35% off-street inventory purchases.
- **Tariff Resilience**: Anticipated consumer pre-buy in Q1; management expects industry stabilization within 90 days, with no plans for price gouging.

**【CFO Financial Commentary】**
- **Franchised Dealerships Strength**: Same-store F&amp;I GPU of $2,442 (4% YoY), fixed operations gross profit up 7% YoY. Powersports segment revenue hit $34.4 million (record), despite seasonal Q1 EBITDA loss.
- **Balance Sheet Health**: $947 million liquidity, $0.35 quarterly dividend declared. 2025 guidance updated to reflect tariff uncertainty, with focus on near-term execution.

**【Q&A Key Themes】**
- **Tariff Impact Mitigation**: EchoPark adapts with 30-35% off-street inventory, reducing auction reliance. Franchised Dealerships maintain 40% warranty work mix but pivot to customer pay in Q2.
- **Fixed Ops Expansion**: 345 new technicians hired since Q1 2024, driving 7% YoY fixed operations growth. Technician productivity ramping with warranty volume.
- **EchoPark Growth Strategy**: 17 stores profitable day-1; Houston location sold 400+ units in 2 months. Potential store reopenings late 2025 if market stabilizes.
- **EV Dynamics**: Inventory aligning with demand, reducing GPU headwinds. Manufacturer drivetrain flexibility supports customer choice.


Sonic Automotive (SAH)-24 Apr 25-2025 Q1 Earnings call transcript

- **Record Q4 Growth**: Franchise revenues up 12% YoY to $3.4B, driven by luxury sales and F&amp;I expansion.
- **Technician Expansion**: 335 net hires in 2024 set stage for 2025 fixed ops growth.
- **M&A Momentum**: $145M annualized revenue from Q4 acquisitions; 2025 focused on luxury import franchises.
- **EchoPark Recovery**: Q4 EBITDA shortfall resolved; 2026 store openings contingent on affordability trends.
- **EV Headwinds**: $400 GPU drag from BEV inventory; industry supply management critical in 2025.


**【CEO Opening Remarks】**
- Q4 2024 GAAP EPS: $1.67; Adjusted EPS: $1.51 (7% YoY decline). 
- Record Q4 consolidated revenues: $3.4B (12% YoY growth), driven by 13% new retail volume and 5% used retail volume increases.
- Franchise segment highlights: 
  - New vehicle GPU: $3,241 (sequential improvement due to luxury mix)
  - Used vehicle GPU: $1,396 (stable vs. prior quarter)
  - F&amp;I GPU: $2,427 (4% sequential growth)
- Added 335 net technicians in 2024, exceeding 300 target.
- Acquired 3 dealerships in Q4, adding $145M annualized revenue.
- 2025 priorities: Major new franchise acquisitions, EchoPark expansion, and Powersports optimization.

**【CFO Financial Highlights】**
- Q4 consolidated gross profit: $506M (14% YoY growth)
- Adjusted EBITDA: $4.2M (EchoPark segment)
- Balance sheet: $862M available liquidity, $0.35 quarterly dividend declared.
- 2025 guidance: Focus on fixed operations growth, disciplined M&A, and EchoPark recovery.

**【Q&A Key Takeaways】**
- **M&A Strategy**: Luxury import focus with multiples improving; 2025 acquisitions expected to enhance EBITDA without adding debt.
- **EV Impact**: $400 YoY GPU drag from BEV inventory; 10% of Q4 inventory electric vehicles vs. 14% in Q3.
- **EchoPark Update**: Q4 EBITDA shortfall ($4.2M vs. $7-8M guidance) due to aged inventory; 2025 rightsizing and 2026 expansion plans.
- **Powersports Outlook**: Cautious expansion with Sturgis rally ad point launch in 2025.
- **Valuation Commentary**: Share price undervalued relative to peers; float dynamics impacting trading multiple.


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