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

Sonic Automotive (NYSE:SAH) issued its earnings results on Wednesday. The company reported $1.52 EPS for the quarter, missing analysts’ consensus estimates of $1.53 by ($0.01), Zacks reports. Sonic Automotive had a net margin of 0.78% and a return on equity of 21.56%. The business had revenue of $3.87 billion during the quarter, compared to analysts’ expectations of $3.94 billion. During the same period in the prior year, the business posted $1.51 EPS. The business’s revenue was down .6% on a year-over-year basis.

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 Stock Performance

Shares of SAH opened at $64.56 on Friday. The stock has a market capitalization of $2.21 billion, a PE ratio of 19.04 and a beta of 0.93. The business’s fifty day moving average price is $62.58 and its 200 day moving average price is $68.89. The company has a debt-to-equity ratio of 1.68, a current ratio of 1.02 and a quick ratio of 0.27. Sonic Automotive has a 12-month low of $52.00 and a 12-month high of $89.62.

Sonic Automotive Announces Dividend

The company also recently declared a quarterly dividend, which will be paid on Wednesday, April 15th. Stockholders of record on Friday, March 13th will be issued 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 is Friday, March 13th. Sonic Automotive’s payout ratio is 41.08%.

Insiders Place Their Bets

In other Sonic Automotive news, major shareholder Paul P. Rusnak purchased 11,481 shares of Sonic Automotive stock in a transaction dated Tuesday, February 17th. The shares were bought at an average cost of $59.95 per share, for a total transaction of $688,285.95. Following the transaction, the insider owned 5,100,000 shares in the company, valued at $305,745,000. This represents a 0.23% increase in their position. The transaction was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Insiders have acquired a total of 100,000 shares of company stock worth $5,994,472 in the last three months. 42.65% of the stock is owned by insiders.

Institutional Investors Weigh In On Sonic Automotive

A number of institutional investors have recently modified their holdings of the business. Northwestern Mutual Wealth Management Co. grew its holdings in shares of Sonic Automotive by 992.5% during the second quarter. Northwestern Mutual Wealth Management Co. now owns 437 shares of the company’s stock valued at $35,000 after purchasing an additional 397 shares during the last quarter. National Bank of Canada FI bought a new position in Sonic Automotive during the 3rd quarter worth $78,000. Raymond James Financial Inc. acquired a new stake in Sonic Automotive in the second quarter worth $168,000. Wexford Capital LP bought a new stake in Sonic Automotive in the third quarter valued at $212,000. Finally, Creative Planning acquired a new position in shares of Sonic Automotive during the second quarter valued at $213,000. Institutional investors own 46.92% of the company’s stock.

Analyst Upgrades and Downgrades

A number of brokerages have commented on SAH. Needham & Company LLC restated a “buy” rating and set a $90.00 price objective on shares of Sonic Automotive in a research note on Thursday. Stephens reduced their price target on Sonic Automotive from $68.00 to $67.00 and set an “equal weight” rating on the stock in a research report on Thursday. Weiss Ratings restated a “hold (c)” rating on shares of Sonic Automotive in a report on Monday, December 29th. Wall Street Zen lowered shares of Sonic Automotive from a “buy” rating to a “hold” rating in a research note on Sunday, January 11th. Finally, Citigroup upgraded shares of Sonic Automotive from a “neutral” rating to a “buy” rating and set a $82.00 target price for the company in a research note on Thursday, November 6th. Four equities research analysts have rated the stock with a Buy rating, five have assigned a Hold rating and one has given a Sell rating to the company. According to data from MarketBeat.com, the stock presently has a consensus rating of “Hold” and an average target price of $77.75.

Sonic Automotive News Summary

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

• Positive Sentiment: Major insider accumulation — Paul P. Rusnak bought roughly 100,000 shares across multiple mid‑February trades (raising his stake to ~5.1M shares). Large, repeated purchases by a controlling shareholder signal confidence and can underpin the stock. SEC Filing: Insider Purchases
• Positive Sentiment: Dividend announced — Sonic declared a $0.38 quarterly dividend (ex‑dividend March 13; payable April 15), implying a ~2.4% yield and a ~41% payout ratio, which can attract income investors and provide some downside support.
• Positive Sentiment: Record gross profit — Management highlighted record gross profit for Q4, which supports a constructive margin narrative despite top‑line pressure. Investing.com: Record Gross Profit
• Neutral Sentiment: Earnings materials available — Full call slide deck and transcript are posted; analysts will parse F&I, used‑vehicle and inventory commentary for guidance changes. Earnings Call Transcript
• Neutral Sentiment: Analyst views remain mixed — Stephens trimmed its price target slightly to $67 (equal‑weight) while Needham reaffirmed a Buy with a $90 target; differing analyst stances add to short‑term volatility. The Fly: PT change
• Negative Sentiment: Q4 slightly missed expectations — Sonic reported $1.52 EPS (vs. $1.53 consensus) and revenue $3.87B (vs. ~$3.94B consensus); revenue declined ~0.6% YoY and net margin stayed slim, which prompted the share gap‑down reaction. Zacks: Q4 Miss AmericanBankingNews: Shares Gap Down

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.