Sonic Automotive (NYSE:SAH) Announces Quarterly Earnings Results

Sonic Automotive (NYSE:SAH) announced its quarterly earnings data on Thursday. The company reported $1.26 EPS for the quarter, missing analysts’ consensus estimates of $1.43 by ($0.17), Zacks reports. Sonic Automotive had a return on equity of 25.31% and a net margin of 1.35%. The firm had revenue of $3.49 billion for the quarter, compared to analysts’ expectations of $3.55 billion. During the same quarter in the previous year, the company posted $2.02 EPS. The firm’s quarterly revenue was down 4.2% compared to the same quarter last year.

Sonic Automotive Price Performance

SAH stock traded down $0.53 during midday trading on Friday, hitting $56.91. 226,774 shares of the stock were exchanged, compared to its average volume of 197,074. The company has a debt-to-equity ratio of 2.04, a quick ratio of 0.36 and a current ratio of 1.10. The stock has a market cap of $1.94 billion, a price-to-earnings ratio of 10.49 and a beta of 1.60. Sonic Automotive has a fifty-two week low of $46.33 and a fifty-two week high of $64.68. The stock’s 50-day moving average price is $57.74 and its 200-day moving average price is $56.57.

Sonic Automotive Increases Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Wednesday, January 15th. Investors of record on Friday, December 13th will be paid a $0.35 dividend. This is an increase from Sonic Automotive’s previous quarterly dividend of $0.30. This represents a $1.40 annualized dividend and a yield of 2.46%. The ex-dividend date of this dividend is Friday, December 13th. Sonic Automotive’s dividend payout ratio (DPR) is presently 22.18%.

Analyst Upgrades and Downgrades

SAH has been the topic of a number of recent analyst reports. Bank of America dropped their price target on shares of Sonic Automotive from $67.00 to $66.00 and set a “buy” rating on the stock in a research note on Monday, October 14th. Morgan Stanley upgraded Sonic Automotive from an “underweight” rating to an “equal weight” rating and boosted their target price for the stock from $40.00 to $58.00 in a research report on Wednesday, September 25th. JPMorgan Chase & Co. increased their target price on Sonic Automotive from $63.00 to $75.00 and gave the stock an “overweight” rating in a research note on Tuesday, September 10th. Stephens started coverage on Sonic Automotive in a research note on Thursday, September 12th. They issued an “equal weight” rating and a $64.00 price target on the stock. Finally, Needham & Company LLC increased their price objective on Sonic Automotive from $73.00 to $74.00 and gave the stock a “buy” rating in a research report on Friday. Three research analysts have rated the stock with a hold rating and four have assigned a buy rating to the company’s stock. According to data from MarketBeat, Sonic Automotive currently has a consensus rating of “Moderate Buy” and a consensus target price of $66.50.

About Sonic Automotive

Sonic Automotive, Inc operates as an automotive retailer in the United States. It operates in three segments, Franchised Dealerships, EchoPark, and Powersports. The Franchised Dealerships segment is involved in the sale of new and used cars and light trucks, and replacement parts; provision of vehicle maintenance, manufacturer warranty repair, and paint and collision repair services; and arrangement of extended warranties, service contracts, financing, insurance, and other aftermarket products for its guests.