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

Sonic Automotive (NYSE:SAH) issued its quarterly 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. Sonic Automotive had a return on equity of 22.45% and a net margin of 0.72%.During the same period last year, the business posted $2.19 EPS. The business’s quarterly revenue was up 7.6% on a year-over-year basis.

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 Stock Performance

Shares of SAH stock traded down $12.08 during trading on Thursday, reaching $100.58. 164,103 shares of the company’s stock traded hands, compared to its average volume of 277,252. The firm’s 50-day moving average is $87.78 and its 200 day moving average is $73.57. The company has a market capitalization of $3.18 billion, a P/E ratio of 32.00, a PEG ratio of 1.60 and a beta of 0.89. Sonic Automotive has a 1 year low of $54.11 and a 1 year high of $113.67. The company has a current ratio of 1.03, a quick ratio of 0.29 and a debt-to-equity ratio of 1.93.

Sonic Automotive News Summary

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

• Positive Sentiment: Second-quarter revenue increased 8% year over year to approximately $3.9 billion, while record total gross profit reached $616.2 million, up 2%. Sonic Automotive Reports Second Quarter 2026 Financial Results
• Positive Sentiment: Sonic Automotive reported adjusted quarterly earnings of $1.82 per share, exceeding the $1.75 Wall Street consensus estimate by $0.07. Revenue also beat expectations. Sonic Automotive Q2 Earnings and Revenues Beat Estimates
• Neutral Sentiment: Investors are assessing detailed operating metrics against analyst forecasts and the prior-year period to determine whether the quarterly beat reflects sustainable improvement. Sonic Automotive Q2 Earnings: How Key Metrics Compare to Wall Street Estimates
• Negative Sentiment: Despite the earnings beat, quarterly EPS fell from $2.19 a year earlier to $1.82, indicating that profit growth lagged the pace of revenue expansion. Sonic Automotive Second-Quarter Earnings Results
• Negative Sentiment: Profitability was pressured by dealership costs. Sonic Automotive posted a net margin of only 0.72%, a factor that appears to have outweighed the revenue and EPS beats in the market’s reaction. Sonic Automotive Shares Turn Negative as Profitability Is Undermined by Dealership Costs

Wall Street Analyst Weigh In

SAH has been the subject of several analyst reports. JPMorgan Chase & Co. dropped their price target on shares of Sonic Automotive from $77.00 to $76.00 and set an “underweight” rating for the company in a research note on Monday, July 13th. Barclays upped their target price on Sonic Automotive from $77.00 to $92.00 and gave the company an “equal weight” rating in a report on Wednesday, July 15th. Stephens set a $89.00 price target on shares of Sonic Automotive in a report on Monday, July 13th. Zacks Research raised Sonic Automotive from a “strong sell” rating to a “hold” rating in a research note on Tuesday, April 28th. Finally, UBS Group increased their price target on Sonic Automotive from $90.00 to $109.00 and gave the stock a “buy” rating in a report on Friday, July 10th. Five equities research analysts have rated the stock with a Buy rating, five have issued a Hold rating and one has issued a Sell rating to the company. According to data from MarketBeat.com, Sonic Automotive has a consensus rating of “Hold” and an average target price of $90.67.

Insider Activity

In other Sonic Automotive news, President Jeff Dyke sold 35,114 shares of the firm’s stock in a transaction on Wednesday, June 10th. The shares were sold at an average price of $85.22, for a total value of $2,992,415.08. Following the completion of the transaction, the president directly owned 543,668 shares of the company’s stock, valued at $46,331,386.96. This trade represents a 6.07% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last 90 days, insiders sold 100,000 shares of company stock worth $8,408,160. Insiders own 43.68% of the company’s stock.

Hedge Funds Weigh In On Sonic Automotive

A number of large investors have recently modified their holdings of the company. Invesco Ltd. lifted its stake in shares of Sonic Automotive by 11.9% in the 4th quarter. Invesco Ltd. now owns 510,963 shares of the company’s stock valued at $31,608,000 after acquiring an additional 54,455 shares during the last quarter. Mercer Global Advisors Inc. ADV bought a new stake in Sonic Automotive in the fourth quarter valued at approximately $217,000. Empowered Funds LLC boosted its stake in shares of Sonic Automotive by 145.5% during the fourth quarter. Empowered Funds LLC now owns 79,882 shares of the company’s stock valued at $4,942,000 after purchasing an additional 47,341 shares during the period. Voloridge Investment Management LLC grew its holdings in shares of Sonic Automotive by 48.6% in the fourth quarter. Voloridge Investment Management LLC now owns 101,224 shares of the company’s stock worth $6,262,000 after purchasing an additional 33,088 shares during the last quarter. Finally, Numerai GP LLC purchased a new position in shares of Sonic Automotive in the fourth quarter worth $343,000. 46.92% of the stock is owned by hedge funds and other institutional investors.

Sonic Automotive Company Profile

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.