Sonic Automotive, the renowned automotive retailer, exceeded expectations with its impressive third-quarter earnings report. The company’s stock price surged by 14% to reach $49.29 following the announcement.
Increased Dividend
One of the notable highlights from the report was Sonic Automotive’s decision to raise its quarterly dividend. The new dividend is set at 30 cents per share, surpassing the previous dividend of 29 cents per share.
Earnings and Revenue Performance
For the quarter, Sonic Automotive reported earnings of $68.4 million, equivalent to $1.92 per share. This is a slight decline compared to last year’s figure of $87.3 million, or $2.23 per share. However, analysts expected lower earnings of $62.8 million, or $1.74 per share.
Revenue figures for the quarter stood at $3.64 billion, showing growth from the previous year’s $3.45 billion. This accomplishment exceeded analysts’ predictions of $3.55 billion.
EchoPark Segment Success
Sonic Automotive mentioned that its EchoPark segment played a significant role in driving revenue growth. The segment reported a remarkable 6% increase in revenue, totaling $626.7 million. EchoPark also witnessed an impressive surge in retail used vehicle sales, with a 25% jump equating to 19,050 units sold.
Overall, Sonic Automotive’s strong performance in the third quarter showcases its resilience and success within the automotive retail industry.
