Sonic Automotive Reports Second Quarter 2024 Financial Results
Intellectia.AI Updated: 2024-08-08
Sonic Automotive Reports Second Quarter 2024 Financial Results
Sonic Automotive, Inc. (SAH), one of the nation's largest automotive retailers, reported its financial results for the second quarter ended June 30, 2024.
Key Financial Metrics
| Metric | Q2 2024 | Q2 2023 | YoY Change | Q1 2024 | QoQ Change | Consensus Estimate | Difference |
|---|---|---|---|---|---|---|---|
| Total Revenue | $3.5B | $3.68B | -5% | $3.58B | -2.2% | $3.58B | -$0.08B |
| Earnings Per Share (EPS) | $1.18 | $0.65 | +82% | N/A | N/A | $1.38 | -$0.20 |
| Adjusted Net Income* | $51.3M | $65.6M | -22% | N/A | N/A | N/A | N/A |
| Adjusted EPS* | $1.47 | $1.84 | -20% | N/A | N/A | N/A | N/A |
Sonic Automotive's revenue of $3.5 billion for Q2 2024 slightly missed consensus estimates, showing a year-over-year decline of 5%. Despite operational challenges due to the CDK Global software outage, the company reported a significant 82% year-over-year increase in earnings per share (EPS).
Segment Revenue Performance
| Segment | Q2 2024 Revenue | YoY Change |
|---|---|---|
| Franchised Dealerships | $2.84B | -3% |
| EchoPark | $517.3M | -14% |
| Powersports | $39.6M | -12% |
Franchised Dealerships Segment saw a 3% decrease in revenue year-over-year, while EchoPark revenue also declined by 14% compared to the same period last year. Powersports Segment revenue was down by 12%.
Key Operational Data
| Key Data | Q2 2024 | YoY Change |
|---|---|---|
| EchoPark Retail Used Vehicle Unit Sales | 16,641 units | -3% |
| Total Adjusted SG&A as % of Gross Profit | 70.7% | N/A |
Comments from Company Officers
David Smith, Chairman and CEO, acknowledged the progress in EchoPark Segment performance and emphasized the operational challenges posed by the CDK Global software outage. EchoPark achieved a record second quarter Adjusted EBITDA, setting the stage for continued growth.
Jeff Dyke, President, maintained a positive outlook despite short-term challenges and affirmed guidance for positive EchoPark Segment adjusted EBITDA for the remainder of 2024.
CFO Heath Byrd highlighted the company's strong financial position, with $467 million in cash and floor plan deposits, and $885 million in total liquidity.
Dividends and Share Repo Program
Sonic's Board of Directors approved a quarterly cash dividend of $0.30 per share, payable on October 15, 2024, to all stockholders of record on September 13, 2024.
Forward Guidance
The company reiterated its expectation for positive quarterly EchoPark Segment adjusted EBITDA for the remainder of 2024, despite ongoing normalization in Franchised Dealerships Segment margins.
Stock Price Movement
The stock price experienced a minor decline of -0.0089% following the earnings release.
Sonic Automotive continues to navigate operational challenges while maintaining a strong financial position and strategic focus for future growth.
