Sonic Automotive (NYSE:SAH) Announces Earnings Results, Beats Expectations By $0.07 EPS

Sonic Automotive (NYSE:SAH) posted its earnings results on Thursday. The company reported $1.82 earnings per share for the quarter, beating analysts’ consensus estimates 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%.The business’s quarterly revenue was up 7.6% compared to the same quarter last year. During the same period in the prior year, the business earned $2.19 EPS.

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 SAH stock traded down $12.92 on Thursday, hitting $99.74. 174,445 shares of the stock traded hands, compared to its average volume of 277,311. The company has a debt-to-equity ratio of 1.93, a current ratio of 1.03 and a quick ratio of 0.29. Sonic Automotive has a 52 week low of $54.11 and a 52 week high of $113.67. The firm has a 50 day simple moving average of $87.78 and a two-hundred day simple moving average of $73.57. The firm has a market cap of $3.15 billion, a price-to-earnings ratio of 32.02, a PEG ratio of 1.60 and a beta of 0.89.

More Sonic Automotive News

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

Insider Buying and Selling

In related news, President Jeff Dyke sold 35,114 shares of Sonic Automotive stock in a transaction that occurred on Wednesday, June 10th. The stock was sold at an average price of $85.22, for a total transaction of $2,992,415.08. Following the sale, the president owned 543,668 shares of the company’s stock, valued at approximately $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 can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold 100,000 shares of company stock worth $8,408,160 over the last quarter. 43.68% of the stock is owned by company insiders.

Institutional Trading of Sonic Automotive

Several institutional investors have recently modified their holdings of the stock. Invesco Ltd. boosted its position in shares of Sonic Automotive by 11.9% during 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 acquired a new stake in shares of Sonic Automotive in the fourth quarter valued at about $217,000. Empowered Funds LLC raised its holdings in shares of Sonic Automotive by 145.5% during the 4th quarter. Empowered Funds LLC now owns 79,882 shares of the company’s stock valued at $4,942,000 after buying an additional 47,341 shares during the period. Voloridge Investment Management LLC boosted its stake 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 valued at $6,262,000 after purchasing an additional 33,088 shares during the period. Finally, Numerai GP LLC acquired a new stake in Sonic Automotive during the 4th quarter valued at $343,000. Institutional investors and hedge funds own 46.92% of the company’s stock.

Analyst Ratings Changes

A number of research firms recently issued reports on SAH. Bank of America raised their price objective on shares of Sonic Automotive from $91.00 to $108.00 and gave the stock a “buy” rating in a report on Thursday, July 9th. Barclays increased their price target on shares of Sonic Automotive from $77.00 to $92.00 and gave the stock an “equal weight” rating in a research report on Wednesday, July 15th. Seaport Research Partners downgraded shares of Sonic Automotive from a “buy” rating to a “neutral” rating and boosted their price objective for the company from $185.00 to $205.00 in a research report on Friday, July 17th. Morgan Stanley set a $72.00 price objective on Sonic Automotive in a research note on Thursday, May 7th. Finally, UBS Group raised their target price 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 assigned a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat, the company currently has a consensus rating of “Hold” and an average price target of $90.67.

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.