Sonic Automotive (NYSE:SAH) Posts Earnings Results, Misses Expectations By $0.01 EPS

Sonic Automotive (NYSE:SAH) announced its earnings results on Wednesday. The company reported $1.52 EPS for the quarter, missing the consensus estimate of $1.53 by ($0.01), Zacks reports. Sonic Automotive had a return on equity of 21.65% and a net margin of 0.86%.The business had revenue of $3.87 billion for the quarter, compared to analyst estimates of $3.94 billion. During the same quarter in the previous year, the company posted $1.51 EPS. The business’s revenue for the quarter was down .6% compared to the same quarter last year.

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

• Sonic reported strong full-year results with Adjusted EPS of $6.60 (up 18% YoY), record annual revenue of $15.2 billion, and consolidated Adjusted EBITDA up 10% to $615 million.
• Franchised dealerships saw same-store new vehicle retail volume decline ~11% YoY and same-store revenue down ~5%, but record fixed operations and F&I results (together >75% of Q4 gross profit) helped offset new-vehicle headwinds.
• EchoPark momentum — record Q4 Adjusted EBITDA and a 15% YoY rise in segment GPU to $3,420/unit — and management plans to resume disciplined store openings late 2026 plus a $10–$20M brand/app investment to accelerate growth toward a >1M-unit long-term goal.
• Balance sheet and capital returns: $702M available liquidity, $306M in cash/floorplan deposits, $82M of share repurchases in 2025, and a new quarterly dividend of $0.38/share, with flexibility to deploy more capital or pursue M&A if attractive.
• Management cautioned that tariffs and OEMs passing costs to consumers could raise new-vehicle prices and weigh on affordability and volumes in 2026, representing the primary near-term downside risk.

Sonic Automotive Trading Up 8.1%

SAH stock opened at $63.00 on Thursday. Sonic Automotive has a 52 week low of $52.00 and a 52 week high of $89.62. The company has a market capitalization of $2.15 billion, a PE ratio of 17.03 and a beta of 0.93. The company’s 50-day simple moving average is $62.64 and its 200 day simple moving average is $68.92. The company has a debt-to-equity ratio of 1.68, a quick ratio of 0.27 and a current ratio of 1.02.

Sonic Automotive Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Wednesday, April 15th. Stockholders of record on Friday, March 13th will be given a $0.38 dividend. This represents a $1.52 dividend on an annualized basis and a dividend yield of 2.4%. The ex-dividend date of this dividend is Friday, March 13th. Sonic Automotive’s payout ratio is presently 41.08%.

Insider Transactions at Sonic Automotive

In other Sonic Automotive news, major shareholder Paul P. Rusnak bought 11,481 shares of the stock in a transaction dated Tuesday, February 17th. The shares were bought at an average cost of $59.95 per share, with a total value of $688,285.95. Following the completion of the acquisition, the insider owned 5,100,000 shares of the company’s stock, valued at $305,745,000. This trade represents a 0.23% increase in their ownership of the stock. The purchase was disclosed in a document filed with the SEC, which is accessible through this link. Over the last ninety days, insiders have bought 100,000 shares of company stock valued at $5,994,472. Insiders own 42.65% of the company’s stock.

Institutional Investors Weigh In On Sonic Automotive

Large investors have recently added to or reduced their stakes in the stock. Northwestern Mutual Wealth Management Co. lifted its position in shares of Sonic Automotive by 8.6% during the 4th quarter. Northwestern Mutual Wealth Management Co. now owns 3,577 shares of the company’s stock valued at $221,000 after acquiring an additional 284 shares during the period. Creative Planning lifted its position in Sonic Automotive by 12.4% during the third quarter. Creative Planning now owns 3,000 shares of the company’s stock worth $228,000 after purchasing an additional 332 shares during the period. Franklin Resources Inc. lifted its holdings in shares of Sonic Automotive by 3.9% during the 4th quarter. Franklin Resources Inc. now owns 11,927 shares of the company’s stock worth $738,000 after acquiring an additional 448 shares during the period. Price T Rowe Associates Inc. MD lifted its holdings in shares of Sonic Automotive by 3.4% during the 4th quarter. Price T Rowe Associates Inc. MD now owns 14,624 shares of the company’s stock worth $905,000 after acquiring an additional 482 shares during the period. Finally, MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. raised its position in Sonic Automotive by 5.8% during the first quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 8,853 shares of the company’s stock valued at $504,000 after purchasing an additional 483 shares in the last quarter. Institutional investors and hedge funds own 46.92% of the company’s stock.

Analyst Upgrades and Downgrades

SAH has been the subject of a number of recent research reports. Barclays reduced their price objective on shares of Sonic Automotive from $71.00 to $69.00 and set an “equal weight” rating for the company in a research note on Wednesday, January 21st. Weiss Ratings restated a “hold (c)” rating on shares of Sonic Automotive in a research note on Monday, December 29th. Wall Street Zen cut Sonic Automotive from a “buy” rating to a “hold” rating in a research note on Sunday, January 11th. Citigroup raised shares of Sonic Automotive from a “neutral” rating to a “buy” rating and set a $82.00 price target on the stock in a research report on Thursday, November 6th. Finally, JPMorgan Chase & Co. reduced their price target on Sonic Automotive from $70.00 to $67.00 and set an “underweight” rating for the company in a report on Friday, January 16th. Four research 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. According to MarketBeat.com, the company presently has an average rating of “Hold” and a consensus target price of $79.63.

Trending Headlines about Sonic Automotive

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

• Positive Sentiment: Large insider accumulation — Major shareholder Paul P. Rusnak bought tens of thousands of shares across several trades in February (bringing his stake to ~5.1M shares). Large, repeated insider purchases at ~\$59.95 signal confidence from a controlling owner and often supports near-term sentiment. SEC Filing: Insider Purchases
• Positive Sentiment: Dividend declared — Sonic announced a quarterly dividend of $0.38/share (ex-dividend March 13; payable April 15), implying ~2.4% yield. The dividend and ~41% payout ratio can attract income-focused investors and provide a floor to seller interest.
• Positive Sentiment: Record gross profit — Management highlighted record gross profit for Q4, suggesting improved operational performance (helpful for margin recovery narratives). Investing.com: Record Gross Profit
• Neutral Sentiment: Earnings materials posted — Slides, call transcript and presentation are available for deeper inspection of F&I, used-vehicle and inventory trends; analysts will parse these for guidance changes. Earnings Call Transcript
• Neutral Sentiment: Institutional positioning mixed — Recent filings show some hedge funds and banks trimming or adding positions; institutional ownership remains material (~47%), so flow changes can amplify moves but aren’t a clear directional signal.
• Negative Sentiment: Slight Q4 miss on top and bottom line — Q4 EPS of $1.52 missed consensus by $0.01 and revenue of $3.87B trailed estimates (~$3.94B); revenue was down ~0.6% YoY and net margin remains slim (~0.86%), giving bears fodder about demand and margin pressure. Zacks: Q4 Miss

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.