Sonic Automotive (NYSE:SAH) Posts Quarterly Earnings Results, Misses Estimates By $0.17 EPS

Sonic Automotive (NYSE:SAH) issued its earnings results on Thursday. The company reported $1.26 EPS for the quarter, missing the consensus estimate of $1.43 by ($0.17), Zacks reports. The firm had revenue of $3.49 billion during the quarter, compared to analysts’ expectations of $3.55 billion. Sonic Automotive had a return on equity of 25.31% and a net margin of 1.35%. The firm’s quarterly revenue was down 4.2% compared to the same quarter last year. During the same period in the previous year, the firm earned $2.02 earnings per share.

Sonic Automotive Stock Down 1.0 %

Shares of SAH stock traded down $0.57 during trading hours on Friday, hitting $56.87. 223,432 shares of the company’s stock traded hands, compared to its average volume of 197,074. The company has a quick ratio of 0.36, a current ratio of 1.10 and a debt-to-equity ratio of 2.04. The stock’s fifty day simple moving average is $57.74 and its two-hundred day simple moving average is $56.57. Sonic Automotive has a 12-month low of $46.33 and a 12-month high of $64.68. The stock has a market cap of $1.94 billion, a price-to-earnings ratio of 10.49 and a beta of 1.60.

Sonic Automotive Increases Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Wednesday, January 15th. Shareholders of record on Friday, December 13th will be issued a $0.35 dividend. This represents a $1.40 dividend on an annualized basis and a yield of 2.46%. The ex-dividend date is Friday, December 13th. This is a boost from Sonic Automotive’s previous quarterly dividend of $0.30. Sonic Automotive’s dividend payout ratio is 22.18%.

Wall Street Analysts Forecast Growth

SAH has been the topic of a number of analyst reports. Morgan Stanley upgraded shares of Sonic Automotive from an “underweight” rating to an “equal weight” rating and boosted their price objective for the company from $40.00 to $58.00 in a research report on Wednesday, September 25th. Stephens started coverage on Sonic Automotive in a report on Thursday, September 12th. They issued an “equal weight” rating and a $64.00 price objective for the company. Needham & Company LLC upped their target price on Sonic Automotive from $73.00 to $74.00 and gave the company a “buy” rating in a report on Friday. Bank of America dropped their target price on shares of Sonic Automotive from $67.00 to $66.00 and set a “buy” rating for the company in a research report on Monday, October 14th. Finally, JPMorgan Chase & Co. increased their price target on shares of Sonic Automotive from $63.00 to $75.00 and gave the stock an “overweight” rating in a research note on Tuesday, September 10th. Three investment analysts have rated the stock with a hold rating and four have issued a buy rating to the company’s stock. According to data from MarketBeat.com, Sonic Automotive currently has an average rating of “Moderate Buy” and an average price target of $66.50.

About Sonic Automotive

Sonic Automotive, Inc operates as an automotive retailer in the United States. It operates in three segments, Franchised Dealerships, EchoPark, and Powersports. The Franchised Dealerships segment is involved in the sale of new and used cars and light trucks, and replacement parts; provision of vehicle maintenance, manufacturer warranty repair, and paint and collision repair services; and arrangement of extended warranties, service contracts, financing, insurance, and other aftermarket products for its guests.