Charlotte-based Sonic Automotive Reports Earnings That Match Wall Street Expectations

10/24/17

Sonic Automotive Inc., one of the nation’s largest automotive retailers, reported a third quarter profit that rose slightly and matched Wall Street expectations, according to a filing Tuesday with the Securities and Exchange Commission.

The Charlotte-based company reported net income from continuing operations for third quarter of $17.4 million, or 40 cents per share, compared to an adjusted net income of $21.2 million, or 47 cents per share the previous year.

Adjustments in the 2017 quarterly were related to fixed asset impairments, weather-related physical damage costs and legal matters. Analysts were expecting earnings of 40 cents per share.

“Hurricane Irma’s effects on Sonic were less significant than those of Harvey but still affected our operations from south Florida up into the Carolinas,” said Executive Vice President of Operations Jeff Dyke in a statement.

According to the filing, Hurricane Harvey closed all stores in the Houston market for a week. Nearly 20 percent of Sonic’s store count and 30 percent of profits come from the Houston market.

The company’s shares fell 10 cents to $19 in Tuesday morning trading.

Revenue from used and new vehicles stayed consistent with the previous year. However, wholesale vehicles saw a 39 percent decrease in revenue.

Sonic Automotive operates locations in 13 states, with 104 stores, 25 brands and 18 collision and repair centers.

The company opened a location in Colorado Springs in the second quarter of 2016 and recently purchased property in the Dallas/Ft. Worth, San Antonio, Houston, Austin and Carolina markets.

During the quarter, the company reported a 23 percent increase in same-store warranty revenues compared to the previous year.

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