What is Sonic Automotive's latest dividend and current dividend yield?

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

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

What is Sonic Automotive's gross profit margin?

Did Sonic Automotive beat or miss consensus estimates last quarter?

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

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

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

- **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

Sales and Services Revenue

Financing Services Revenue

Other Revenue

Cost of Revenue

Cost of Goods and Services

Cost of Financing Services

Other Cost

Gross Profit

Other Operating Income

Operating Expenses

Selling, General and Administrative Expenses

Selling and Marketing Expenses

General and Administrative Expenses

Research and Development Expenses

Loss on Bad Debts

Loss on Impairment of Other Assets

Loss on Disposal of Assets

Other Operating Expenses

Operating Income

Non-Operating Income (Loss)

Income (Loss) from Affiliates

Income (Loss) from Associates

Income (Loss) from Joint ventures

Gain (Loss) on Other Investment

Gain (Loss) on Change in Fair Value

Gain (Loss) on Foreign Currency Exchange

Other Non-Operating Income (Loss)

Net Interest Expense

Interest Expense

Interest Income

Pretax Income From Continuing Operations

Income Tax Expense

Current Income Tax

Deferred Income Tax

Income Tax Adjustments

Net Income from Continuing Operations

Income from Discontinued Operations

Other Items Before Net Income

Net Income

Net Income Attributable to Minority Interests

Net Income Attributable to Owners of the Company

Preferred Stock Dividends

Other Adjustments

Net Income Attributable to Common Stockholders

Other Comprehensive Income

Total Comprehensive Income

Total Comprehensive Income Attributable to Minority Interests

Total Comprehensive Income Attributable to Owners of the Company

Basic EPS

Basic EPS from Continuing Operations

Basic EPS from Discontinued Operations

Diluted EPS

Diluted EPS from Continuing Operations

Diluted EPS from Discontinued Operations

SAH

SAH fundamentals

You can ask Aime