SAH Earnings Prediction
The chart below shows how SAH performed 10 days before and after its earnings report, based on data from the past quarters. Typically, SAH sees a -3.91% change in stock price 10 days leading up to the earnings, and a +0.66% change 10 days following the report. On the earnings day itself, the stock moves by +2.33%. This data can give you a slight idea of what to expect for the next quarter's release.
SAH Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
3.49B
-4.17%
1.11%
Gross Margin
14.48%
-3.53%
-0.41%
Operating Margin
3.25%
-13.79%
2.85%
Net Margin
2.13%
13.30%
78.99%
EPS
2.13
10.94%
80.51%
No Data Available
SAH Earnings Analysis
Sonic Automotive, Inc. Corporation (SAH.N) Earnings Conference Call
Positive
Record Quarterly Gross Profit: 1. Record EchoPark Performance: EchoPark reported all-time record quarterly gross profit of $55 million, up 5% from the prior year, and adjusted EBITDA of $8.9 million, demonstrating strong operational execution.
Same-Store Fixed Ops Growth: 2. Strong Same-Store Fixed Ops Growth: Same-store fixed operations gross profit increased by 8% in the third quarter, reflecting the effectiveness of the company's service strategies and technician headcount growth.
Technician Headcount Expansion: 3. Increased Technician Headcount: Sonic Automotive has successfully increased its technician headcount by a net 216 techs, positioning the company to achieve its goal of adding 300 techs in 2024, which is expected to contribute an additional $100 million in annualized fixed ops gross profit.
Strong Financial Liquidity: 4. Robust Liquidity Position: The company ended the third quarter with $834 million in available liquidity, ensuring a strong financial position to navigate market changes and invest in growth opportunities.
Dividend Increase Announcement: 5. Dividend Increase: The Board of Directors approved a 17% increase in the quarterly cash dividend to $0.35 per share, reflecting confidence in the company's financial health and commitment to returning value to shareholders.
Negative
Adjusted EPS Decline: 1. Decline in Adjusted EPS: Adjusted EPS fell by 38% year-over-year to $1.26, primarily due to the normalization of new vehicle gross profit per unit (GPU) and the impact of a CDK outage.
New Vehicle GPU Decline: 2. New Vehicle GPU Decrease: Same-store new vehicle GPU decreased by $540 per unit from the previous quarter, reaching $3,049, with headwinds from electric vehicle sales and stop-sale orders affecting high-margin models.
Revenue Decline Challenges: 3. EchoPark Revenue Drop: EchoPark revenues decreased by 13% year-over-year to $545 million, despite achieving record gross profit, indicating challenges in maintaining sales volume.
Used Vehicle GPU Drop: 4. Used Vehicle GPU Decline: Used vehicle GPU on a same-store basis fell to $13,860 per unit, reflecting a decrease in average retail used pricing compared to the previous quarter.
CDK Outage Financial Impact: 5. Impact of CDK Outage: The CDK outage negatively impacted GAAP income before taxes by approximately $17.2 million, translating to a $0.36 reduction in diluted EPS, alongside excess compensation costs for affected employees.
SAH FAQs
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SAH Earning Call Sentiment
Sonic Automotive, Inc. (SAH) Q3 2024 Earnings Conference Call Transcript
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SAH.N
2.27%Positive
The earnings call summary presents a mixed picture: strong fixed ops growth, record adjusted EBITDA, and a dividend increase are positives, while declining used vehicle GPU and EchoPark revenues are negatives. The Q&A reveals management's vague responses on storm impacts and EV/ICE GPU breakdowns, raising concerns. Despite positive elements like strong Q3 unit performance and liquidity, uncertainties in EV sales and technician shortages temper expectations. Given the company's market cap, these factors suggest a neutral stock price reaction in the short term.
