Sonic Automotive (NYSE:SAH) Releases Quarterly Earnings Results, Beats Estimates By $0.07 EPS

Sonic Automotive (NYSE:SAH) issued its earnings results on Thursday. The company reported $1.82 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.75 by $0.07, Zacks reports. The company had revenue of $3.93 billion for the quarter, compared to analyst estimates of $3.78 billion. Sonic Automotive had a net margin of 1.37% and a return on equity of 20.68%. The company’s revenue for the quarter was up 7.6% on a year-over-year basis. During the same quarter last year, the firm earned $2.19 EPS.

Here are the key takeaways from Sonic Automotive’s conference call:

• Record quarterly results: Second-quarter revenue reached $3.9 billion, up 8% year over year, while gross profit hit a record $616.2 million. Adjusted EPS was $1.82, compared with reported GAAP EPS of $1.79.
• Sonic raised its full-year new-vehicle gross profit per unit guidance to $2,850–$3,000, citing strong first-half performance despite expected tariff-related affordability pressure in the second half. Fixed operations also set a quarterly gross-profit record, supported by customer-pay and warranty work.
• EchoPark continued gaining volume and market reach: Revenue rose 15% and used retail unit volume increased 17% to 19,601 units, with July growth reportedly above 20%. Management expects 12%–15% full-year unit growth and plans to increase brand marketing later in the year, although store openings are being paced by construction timing.
• Powersports delivered substantial growth, with revenue up 53%, gross profit up 57%, and adjusted EBITDA up 145% year over year. Recently acquired Harley-Davidson dealerships are performing above expectations, and management cited a strong acquisition pipeline across Powersports and franchised dealerships.
• Management highlighted significant affordability challenges, including tariffs, new-vehicle prices approaching $60,000–$61,000, and rising monthly payments. These conditions may pressure new- and used-vehicle margins, but could support EchoPark demand and longer vehicle ownership, creating potential upside for fixed operations.

Sonic Automotive Trading Down 8.9%

Shares of NYSE:SAH opened at $91.43 on Friday. The company has a quick ratio of 0.29, a current ratio of 1.03 and a debt-to-equity ratio of 1.93. The firm has a market cap of $2.89 billion, a price-to-earnings ratio of 14.58, a PEG ratio of 1.54 and a beta of 0.89. The company’s fifty day simple moving average is $88.55 and its 200 day simple moving average is $73.95. Sonic Automotive has a 12 month low of $54.11 and a 12 month high of $113.67.

Sonic Automotive Dividend Announcement

The business also recently disclosed a quarterly dividend, which will be paid on Thursday, October 15th. Investors of record on Tuesday, September 15th will be issued a dividend of $0.41 per share. This represents a $1.64 dividend on an annualized basis and a dividend yield of 1.8%. The ex-dividend date is Tuesday, September 15th. Sonic Automotive’s dividend payout ratio (DPR) is presently 26.16%.

Insider Transactions at Sonic Automotive

In related news, President Jeff Dyke sold 35,114 shares of Sonic Automotive stock in a transaction that occurred on Wednesday, June 10th. The stock was sold at an average price of $85.22, for a total value of $2,992,415.08. Following the sale, the president owned 543,668 shares of the company’s stock, valued at approximately $46,331,386.96. This trade represents a 6.07% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last quarter, insiders sold 100,000 shares of company stock valued at $8,408,160. 43.68% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

Several large investors have recently added to or reduced their stakes in the business. Northwestern Mutual Wealth Management Co. lifted its position in Sonic Automotive by 992.5% during the 2nd quarter. Northwestern Mutual Wealth Management Co. now owns 437 shares of the company’s stock worth $35,000 after buying an additional 397 shares in the last quarter. National Bank of Canada FI acquired a new position in Sonic Automotive during the third quarter valued at approximately $78,000. Raymond James Financial Inc. bought a new position in Sonic Automotive in the second quarter valued at approximately $168,000. Creative Planning acquired a new position in shares of Sonic Automotive during the 2nd quarter worth approximately $213,000. Finally, Wexford Capital LP acquired a new position in shares of Sonic Automotive during the 3rd quarter worth approximately $212,000. Institutional investors and hedge funds own 46.92% of the company’s stock.

Analyst Ratings Changes

Several analysts have commented on SAH shares. Weiss Ratings upgraded shares of Sonic Automotive from a “hold (c)” rating to a “hold (c+)” rating in a research report on Thursday, July 23rd. Zacks Research raised Sonic Automotive from a “strong sell” rating to a “hold” rating in a research note on Tuesday, April 28th. UBS Group increased their target price on Sonic Automotive from $90.00 to $109.00 and gave the company a “buy” rating in a research note on Friday, July 10th. Seaport Research Partners lowered Sonic Automotive from a “buy” rating to a “neutral” rating and boosted their target price for the stock from $185.00 to $205.00 in a research report on Friday, July 17th. Finally, Morgan Stanley set a $72.00 price objective on shares of Sonic Automotive in a research note on Thursday, May 7th. Five analysts have rated the stock with a Buy rating, five have issued a Hold rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat, the company currently has a consensus rating of “Hold” and a consensus target price of $96.11.

Key Stories Impacting Sonic Automotive

Here are the key news stories impacting Sonic Automotive this week:

• Positive Sentiment: Needham raised its price target to $139 from $90 and upgraded SAH to “Buy,” implying substantial potential upside from recent trading levels. The upgrade provides a bullish catalyst following the earnings report. Benzinga
• Positive Sentiment: Second-quarter revenue rose 8% year over year to approximately $3.9 billion, exceeding the $3.78 billion analyst estimate. Sonic also reported record quarterly gross profit of $616.2 million, up 2% year over year. Sonic Automotive Reports Second Quarter 2026 Financial Results
• Positive Sentiment: Adjusted earnings of $1.82 per share topped the $1.75 consensus estimate by $0.07, indicating better-than-expected quarterly results despite pressure on margins. Sonic Automotive Q2 Earnings and Revenues Beat Estimates
• Positive Sentiment: Sonic declared a quarterly dividend of $0.41 per share, payable October 15 to eligible shareholders. The annualized payout is $1.64 per share, representing an indicated yield of about 1.6%.
• Neutral Sentiment: Management’s second-quarter earnings call and presentation provide additional details on operating performance and the company’s outlook, but the reported headline results remain mixed. Sonic Automotive Q2 2026 Earnings Call Transcript
• Negative Sentiment: Profit fell from $2.19 per share in the year-earlier quarter to $1.82, while net margin was only 0.72%. Reports attributed the weaker profitability to higher dealership costs, which overshadowed the revenue growth and earnings beat. Sonic Automotive Shares Turn Negative as Profitability Undermined by Dealership Costs

About Sonic Automotive

Sonic Automotive, Inc is a publicly traded automotive retailer that operates a network of franchised new-car dealerships and used-vehicle dealerships across the United States. Headquartered in Charlotte, North Carolina, the company offers a range of services that include vehicle sales, leasing, finance and insurance products, service and parts, and collision repair. Sonic Automotive’s dealerships represent numerous major automotive brands, and the company also markets a broad selection of pre-owned vehicles under its own banner.

In addition to its core dealership operations, Sonic Automotive has developed digital retail capabilities that allow customers to research, shop and complete transactions online.