Sonic Automotive Inc. rose more than 10 percent in Tuesday trading after it reported fourth quarter earnings that easily surpassed Wall Street estimates.

The used and new car retailer reported its fourth quarter earnings of $38 million, or 84 cents per share, according to a filing Tuesday with the Securities and Exchange Commission. Adjusted for one-time gains and costs, earnings were 66 cents, which beat the consensus estimate of 62 cents.

Sonic Automotive is Fortune 500 company and in the Russell 2000 index. The company went public in 1997 and operates in 13 states.

Its shares rose $2.40, or 10.1 percent, to $26.15, in Tuesday morning trading.

“We are very proud of our record setting performance in the fourth quarter and throughout 2016,” said Jeff Dyke, executive vice president of operations. “During the year, increases in fixed operations and F&I gross profit have been able to overshadow challenges experienced in the new and used vehicle gross profit categories.”

The earnings per share include a net loss of $1.3 million, or 3 cents per share, related to the company’s EchoPark initiatives.

EchoPark stores had a total retail of 1,330 units, up 74.1 percent from the previous year’s fourth quarter. For the 2016 year, the EchoPark stores retailed 4,865 cars which is up over 50 percent from the 2015 year.

Net income from for the 2016 year was $94.5 million, or $2.06 per share.

For the full 2016 year, annual total gross profit rose 1 percent to $1.429 billion and annual fixed operations gross profit rose 1.3 percent to $674.1 million.

“The 2016 year proved to be a bit of a roller coaster ride from month-to-month as we believe consumer uncertainty, the effect of recalls and stop-sales made it challenging for all automotive retailers,” said CEO B. Scott Smith. “We expect 2017 to be consistent with the 2016 environment for dealers and anticipate new vehicle industry volume to be between 17.0 million and 17.5 million units. We project diluted earnings per share from continuing operations for 2017 to be between $2.00 and $2.10 per share.”

For 2017, the company is going to focus on growth in EchoPark, One Sonic-One Experience, and through acquisitions and open points. The company also wants to own its own properties and return more capital to shareholders.

The company’s board of directors approved a quarterly dividend of 5 cents per share that will be payable on April 14.

The company’s stock closed Friday at $23.75.