Sonic Automotive (NYSE:SAH) Issues Quarterly Earnings Results

Sonic Automotive (NYSE:SAH) posted its earnings results on Thursday. The company reported $1.82 EPS for the quarter, topping the consensus estimate of $1.75 by $0.07, Zacks reports. Sonic Automotive had a net margin of 0.72% and a return on equity of 22.45%. During the same period in the previous year, the business posted $2.19 earnings per share. 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 Price Performance

Shares of NYSE:SAH traded down $12.08 on Thursday, reaching $100.58. The company’s stock had a trading volume of 164,103 shares, compared to its average volume of 277,252. The company has a 50-day simple moving average of $87.78 and a 200 day simple moving average of $73.57. The company has a debt-to-equity ratio of 1.93, a quick ratio of 0.29 and a current ratio of 1.03. Sonic Automotive has a 52-week low of $54.11 and a 52-week high of $113.67. The company has a market cap of $3.18 billion, a P/E ratio of 32.00, a PEG ratio of 1.60 and a beta of 0.89.

Analyst Upgrades and Downgrades

A number of equities research analysts have weighed in on the stock. Zacks Research upgraded shares of Sonic Automotive from a “strong sell” rating to a “hold” rating in a report on Tuesday, April 28th. UBS Group upped their price target on Sonic Automotive from $90.00 to $109.00 and gave the stock a “buy” rating in a research note on Friday, July 10th. Citigroup raised their price objective on Sonic Automotive from $82.00 to $95.00 and gave the company a “buy” rating in a research report on Monday, May 11th. Bank of America boosted their target price on Sonic Automotive from $91.00 to $108.00 and gave the stock a “buy” rating in a report on Thursday, July 9th. Finally, Stephens set a $89.00 target price on Sonic Automotive in a research note on Monday, July 13th. Five analysts have rated the stock with a Buy rating, five have given a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat.com, the stock has an average rating of “Hold” and a consensus target price of $90.67.

Insider Activity

In other news, President Jeff Dyke sold 35,114 shares of Sonic Automotive stock in a transaction that occurred on Wednesday, June 10th. The shares were sold at an average price of $85.22, for a total transaction of $2,992,415.08. Following the completion of the sale, the president owned 543,668 shares of the company’s stock, valued at approximately $46,331,386.96. The trade was a 6.07% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last three months, insiders sold 100,000 shares of company stock worth $8,408,160. 43.68% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently made changes to their positions in the stock. Northwestern Mutual Wealth Management Co. lifted its position in Sonic Automotive by 8.6% during the fourth quarter. Northwestern Mutual Wealth Management Co. now owns 3,577 shares of the company’s stock valued at $221,000 after purchasing an additional 284 shares during the period. Creative Planning raised its stake in shares of Sonic Automotive by 12.4% during the 3rd quarter. Creative Planning now owns 3,000 shares of the company’s stock valued at $228,000 after buying an additional 332 shares during the last quarter. Franklin Resources Inc. raised its stake 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 valued at $738,000 after buying an additional 448 shares during the last quarter. Price T Rowe Associates Inc. MD lifted its holdings in shares of Sonic Automotive by 3.4% in the 4th quarter. Price T Rowe Associates Inc. MD now owns 14,624 shares of the company’s stock valued at $905,000 after buying an additional 482 shares during the period. Finally, MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. grew its stake in shares of Sonic Automotive by 5.8% during the 1st quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 8,853 shares of the company’s stock worth $504,000 after purchasing an additional 483 shares during the period. Hedge funds and other institutional investors own 46.92% of the company’s stock.

Sonic Automotive News Roundup

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

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.