Sonic Automotive, Inc.
SAH
registered fourth-quarter 2021 adjusted earnings per share of $2.66, which beat the Zacks Consensus Estimate of $1.83. Higher-than-expected gross profit from new and used vehicle segments led to the outperformance. The bottom line was also 77.3% higher than $1.50 per share reported in the year-ago quarter. Total revenues amounted to $3,184.6 million, increasing 13.8% from the prior-year figure and topping the Zacks Consensus Estimate of $3,167.2 million.
Quarter in Detail
In the reported quarter, revenues from the sales of new vehicles rose 2.2% year over year to $1,351.9 million and topped the consensus mark of $1,249 million. Same-store unit sales volume inched down 19.2% to 22,186, but gross profit per unit surged 127.9% to $6,661. Gross profit totaled $147.8 million, outpacing the consensus mark of $117 million.
Revenues from the sales of used vehicles surged 26.1% from the prior-year level to $1,210.9 million but lagged the consensus mark of $1,365 million. Same-store unit sales decreased 13.2% to 22,006 in the quarter under review. Gross profit per unit jumped 98.2% year over year to $2,087. Gross profit totaled $45.9 million, outpacing the consensus mark of $32.6 million.
The EchoPark segment recorded revenues of $579.2 million, reflecting a 49.7% uptick from the year-ago figure. Its stores sold 18,144 units (with used-vehicle unit sales volume of 15,649), up 7.7% on a year-over-year basis. The segment’s gross profit increased 56.7% to $40.9 million.
Wholesale vehicle revenues soared 86.7% on a year-over-year basis to $110.5 million and marginally beat the consensus mark of $106 million. Revenues from parts, services and collision repair were up 12.8% year over year to $360.1 million but missed the Zacks Consensus Estimate of $367 million. Finance, insurance and other revenues came in at $151.2 million, up 10.4% from the corresponding quarter of 2020. The metric, however, lagged the consensus estimate of $166 million.
Selling, general and administrative expenses were up 32.5% year over year to $343.3 million in the quarter. The board of directors approved a 108% increase to the SAH’s quarterly cash dividend to 25 cents per share from 12 cents, payable on Apr 14, 2022, to all stockholders of record on Mar 15, 2022. Since the end of the third quarter of 2021, Sonic has repurchased around 1 million shares of its Class A Common Stock for an aggregate purchase price of nearly $50.4 million.
Zacks Rank & Other Key Picks
Currently, SAH has a Zacks Rank #1 (Strong Buy).
Other top-ranked players in the auto space include
Tesla
TSLA
, sporting a Zacks Rank #1and
Dorman Products
DORM
and
Standard Motor Products
SMP
, each carrying a Zacks Rank #2 (Buy) currently. You can see
the complete list of today’s Zacks #1 Rank stocks here
.
Tesla has an expected earnings growth rate of 40.7% for the current year. The Zacks Consensus Estimate for current-year earnings has been revised around 22.3% upward in the past 60 days.
Tesla’s earnings beat the Zacks Consensus Estimate in all of the trailing four quarters. TSLA pulled off a trailing four-quarter earnings surprise of 33.3%, on average. The stock has also rallied 11.3% over a year.
Dorman has an expected earnings growth rate of 15.9% for the current year. The Zacks Consensus Estimate for current-year earnings has been revised around 0.2% upward in the past 60 days.
Dorman’s earnings beat the Zacks Consensus Estimate in three of the trailing four quarters and met the consensus mark in one. DORM pulled off a trailing four-quarter earnings surprise of 10.41%, on average. The stock has also rallied 1.4% over a year.
SMP Motor has an expected earnings growth rate of 5.5% for the current year. The Zacks Consensus Estimate for current-year earnings has been revised around 0.2% upward in the past 60 days.
SMP Motor’s earnings beat the Zacks Consensus Estimate in all of the trailing four quarters. SMP pulled off a trailing four-quarter earnings surprise of 67.27%, on average. The stock has also rallied 17.2% over a year.
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