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Bank of America Corp DE trimmed its position in shares of Sonic Automotive, Inc. (NYSE:SAH – Free Report) by 12.1% in the 1st quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission. The firm owned 130,291 shares of the company’s stock after selling 17,888 shares during the period. Bank of America Corp DE owned 0.41% of Sonic Automotive worth $8,934,000 as of its most recent filing with the Securities and Exchange Commission.

Several other hedge funds have also recently made changes to their positions in SAH. Goldman Sachs Group Inc. increased its holdings in Sonic Automotive by 124.9% in the 1st quarter. Goldman Sachs Group Inc. now owns 355,328 shares of the company’s stock worth $20,239,000 after acquiring an additional 197,336 shares during the last quarter. Heartland Advisors Inc. purchased a new stake in Sonic Automotive during the first quarter valued at about $8,450,000. Bridgeway Capital Management LLC bought a new position in Sonic Automotive during the fourth quarter worth about $7,384,000. Qube Research & Technologies Ltd purchased a new position in shares of Sonic Automotive in the third quarter worth about $7,450,000. Finally, BNP Paribas Financial Markets increased its stake in shares of Sonic Automotive by 70.8% in the fourth quarter. BNP Paribas Financial Markets now owns 181,189 shares of the company’s stock worth $11,208,000 after purchasing an additional 75,125 shares in the last quarter. 46.92% of the stock is currently owned by institutional investors.

Sonic Automotive Stock Performance NYSE SAH opened at $75.41 on Tuesday. The company’s 50 day simple moving average is $87.89 and its two-hundred day simple moving average is $76.18. The company has a debt-to-equity ratio of 1.88, a current ratio of 1.01 and a quick ratio of 0.25. Sonic Automotive, Inc. has a 1 year low of $54.11 and a 1 year high of $113.67. The stock has a market capitalization of $2.38 billion, a PE ratio of 12.03, a P/E/G ratio of 1.24 and a beta of 0.86.

Sonic Automotive (NYSE:SAH – Get Free Report) last released its quarterly earnings results on Thursday, July 30th. The company reported $1.82 EPS for the quarter, beating analysts’ consensus estimates of $1.75 by $0.07. Sonic Automotive had a net margin of 1.37% and a return on equity of 20.75%. The firm had revenue of $3.93 billion during the quarter, compared to analyst estimates of $3.78 billion. During the same period in the previous year, the business earned $2.19 EPS. The business’s revenue for the quarter was up 7.6% on a year-over-year basis. Analysts predict that Sonic Automotive, Inc. will post 6.95 earnings per share for the current fiscal year. Sonic Automotive Announces Dividend The firm also recently declared a quarterly dividend, which will be paid on Thursday, October 15th. Shareholders of record on Tuesday, September 15th will be issued a $0.41 dividend. The ex-dividend date of this dividend is Tuesday, September 15th. This represents a $1.64 annualized dividend and a dividend yield of 2.2%. Sonic Automotive’s dividend payout ratio (DPR) is presently 26.16%.

Insider Activity In other news, President Jeff Dyke sold 35,114 shares of the business’s stock in a transaction dated Wednesday, June 10th. The stock was sold at an average price of $85.22, for a total transaction of $2,992,415.08. Following the completion of the transaction, the president owned 543,668 shares of the company’s stock, valued at approximately $46,331,386.96. The trade was a 6.07% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last ninety days, insiders sold 100,000 shares of company stock worth $8,408,160. Company insiders own 43.68% of the company’s stock.

Analyst Ratings Changes Several research analysts recently commented on the stock. Citigroup raised their price objective on shares of Sonic Automotive from $95.00 to $115.00 and gave the stock a “buy” rating in a report on Monday, August 3rd. Needham & Company LLC increased their target price on Sonic Automotive from $90.00 to $139.00 and gave the stock a “buy” rating in a research report on Friday, July 31st. Seaport Research Partners lowered Sonic Automotive from a “buy” rating to a “neutral” rating and raised their price target for the stock from $185.00 to $205.00 in a report on Friday, July 17th. Stephens set a $89.00 price objective on Sonic Automotive in a research note on Monday, July 13th. Finally, Morgan Stanley cut Sonic Automotive from an “equal weight” rating to an “underweight” rating and set a $72.00 price objective on the stock. in a report on Friday, August 7th. Six investment analysts have rated the stock with a Buy rating, three have assigned a Hold rating and two have given a Sell rating to the company’s stock. Based on data from MarketBeat, the stock presently has a consensus rating of “Hold” and an average price target of $97.33.

Read Our Latest Report on Sonic Automotive

Sonic Automotive Company Profile (Free Report)

Sonic Automotive, Inc is a publicly traded automotive retailer that operates a network of franchised new-car dealerships and used-vehicle dealerships across the United States. Headquartered in Charlotte, North Carolina, the company offers a range of services that include vehicle sales, leasing, finance and insurance products, service and parts, and collision repair. Sonic Automotive’s dealerships represent numerous major automotive brands, and the company also markets a broad selection of pre-owned vehicles under its own banner.

In addition to its core dealership operations, Sonic Automotive has developed digital retail capabilities that allow customers to research, shop and complete transactions online.

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Newsweek's 2026 Most Trustworthy Company Honoree Strengthens Sonic's Northern California Presence and Expands Its Porsche Portfolio to Six Dealerships

, /PRNewswire/ -- Sonic Automotive, Inc. (NYSE: SAH), one of the nation's largest automotive and powersports retailers and a recipient of Newsweek's 2026 Most Trustworthy Companies in America recognition, today announced the acquisition of Porsche Walnut Creek, further expanding its presence in the Bay Area market.

This acquisition advances Sonic Automotive's investment in luxury automotive retail and strengthens its relationship with the Porsche brand. Porsche Walnut Creek serves Walnut Creek, the East Bay, and the greater San Francisco Bay Area, and is located in one of Northern California's most desirable automotive markets, where clients expect performance, personalization, convenience, and exceptional care.

Previously operated by Fletcher Jones Automotive Group, Porsche Walnut Creek is located at 2555 N. Main Street in Walnut Creek, California, ideally situated off the 680 Freeway. The dealership is known for its boutique guest experience, and this acquisition complements that legacy with Sonic Automotive's reputation for delivering world-class guest experiences.

"The Bay Area is one of the most important luxury automotive markets in the country, and this acquisition reflects our ongoing commitment to expanding in premium, high-performing markets," said David B. Smith, Chairman and Chief Executive Officer of Sonic Automotive, Inc. "Porsche Walnut Creek has an outstanding reputation and a guest experience that aligns perfectly with our vision for the future of luxury automotive retail. We are proud to welcome this dealership and teammates into the Sonic Automotive family."

With the addition of Porsche Walnut Creek, Sonic Automotive now operates six Porsche dealerships nationwide, enhancing its ability to serve Porsche clients and enthusiasts in key luxury markets. This acquisition supports Sonic's broader luxury growth strategy and expands its California portfolio, which includes BMW, Honda, Jaguar, Land Rover, Lexus, Mercedes-Benz, MINI, and Toyota. The company also operates EchoPark Automotive and Harley-Davidson dealerships in the state.

Porsche Walnut Creek offers the full Porsche experience, including new Porsche vehicles, Porsche Certified Pre-Owned vehicles, pre-owned vehicles, factory-trained service, Porsche Genuine Parts, and personalized support throughout the ownership journey. Serving the Walnut Creek community since 2006, the Porsche Center has built its reputation around experienced teammates, long-standing client relationships, and a deep appreciation for the Porsche brand. The team brings decades of combined automotive and German luxury experience across sales, service advising, and technical expertise, including Porsche Certified Gold Technicians.

The acquisition comes at an exciting time for Porsche's SUV portfolio. The Cayenne has long been a cornerstone of the brand, and the Cayenne Electric, the first fully electric version of one of Porsche's most iconic nameplates, is now beginning to arrive. Joining the existing gas and hybrid variants, it further expands customer choice across the Cayenne family and the broader Porsche lineup. For Porsche Walnut Creek, this creates an opportunity to introduce Bay Area clients to a new expression of Porsche performance, versatility, and electric innovation.

Clients will continue to be served by the same dedicated Porsche Walnut Creek team, including General Manager Mike Pardini, who has served clients there for 22 years. A Walnut Creek native, Pardini has deep roots in the community and a long-standing personal connection to the Porsche brand. His father also served clients at Porsche Walnut Creek for 15 years, creating a family legacy tied to the Porsche Center and its clients.

In addition to Porsche Walnut Creek, Sonic Automotive serves automotive and powersports clients in California through its portfolio of dealerships, including Autobahn Motors, Beverly Hills BMW, BMW and MINI of Monrovia, Buena Park Honda, Carson Honda, Concord Honda, Concord Toyota, Crown Lexus, EchoPark Sacramento, Honda of Serramonte, Honda of Stevens Creek, Jaguar Land Rover Beverly Hills, Jaguar Land Rover Newport Beach, Jaguar Land Rover San Jose, Land Rover Pasadena, Land Rover Santa Monica, Lexus of Marin, Lexus of Serramonte, Long Beach BMW, Mercedes-Benz of Calabasas, Mercedes-Benz of Walnut Creek, Poway Honda, San Diego Harley-Davidson, Stevens Creek BMW, and W.I. Simonson Mercedes-Benz.

About Porsche Walnut Creek

Porsche Walnut Creek is an established Porsche Center serving Walnut Creek, the East Bay, and the greater San Francisco Bay Area. The Porsche Center offers new Porsche vehicles, Porsche Certified Pre-Owned vehicles, pre-owned vehicles, factory-trained service, genuine Porsche parts, and personalized support throughout every stage of the Porsche ownership journey. Serving the Walnut Creek community since 2006, Porsche Walnut Creek is committed to delivering an elevated automotive experience defined by performance, expertise, hospitality, convenience, and long-term client relationships. Find out more at porschewalnutcreek.com.

About Sonic Automotive

For more than 60 years, Sonic Automotive has pursued a single purpose: to deliver an experience for our guests and our teammates that fulfills dreams, enriches lives, and delivers happiness. We don't simply sell and service vehicles. We help people pursue their dreams, whether it's a guest purchasing their first vehicle, a family creating lifelong memories, or a teammate building a meaningful career.

Founded in 1966 by Bruton Smith, the company has grown into a Fortune 300 company under the leadership of Chairman and CEO David B. Smith. Today, more than 11,000 teammates bring the company's purpose to life across a nationwide network of 173 automotive and powersports franchises in 145 locations in 90 cities and 21 states. We are proud to represent 24 automotive and 15 powersports brands and have helped more than 7 million guests purchase vehicles, delivered over 40 million service experiences, and earned more than 1 million 5-star reviews by consistently putting people first.

At Sonic Automotive, we believe trust isn't claimed — it's earned through transparency, consistency, integrity, and genuine care. That's why we were the only automotive and powersports retailer recognized by Newsweek as one of America's Most Trustworthy Companies in 2026. As the automotive and powersports industries continue to evolve, our mission remains constant: to innovate, lead with integrity, and create exceptional experiences that inspire confidence, build lifelong relationships, and positively impact every life we touch.

Sonic Automotive. Driven By People. Inspired By Purpose. For more information, visit www.sonicautomotive.com and ir.sonicautomotive.com.

Sonic Automotive Press Inquiries
Sonic Automotive Media Relations
[email protected]

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SOURCE VML

All investors love getting big returns from their portfolio, whether it's through stocks, bonds, ETFs, or other types of securities. However, when you're an income investor, your primary focus is generating consistent cash flow from each of your liquid investments.

Cash flow can come from bond interest, interest from other types of investments, and, of course, dividends. A dividend is that coveted distribution of a company's earnings paid out to shareholders, and investors often view it by its dividend yield, a metric that measures the dividend as a percent of the current stock price. Many academic studies show that dividends make up large portions of long-term returns, and in many cases, dividend contributions surpass one-third of total returns.

Headquartered in Charlotte, Sonic Automotive (SAH - Free Report) is a Retail-Wholesale stock that has seen a price change of 26.16% so far this year. The auto dealer is currently shelling out a dividend of $0.41 per share, with a dividend yield of 2.1%. This compares to the Automotive - Retail and Whole Sales industry's yield of 0.76% and the S&P 500's yield of 1.34%.

Looking at dividend growth, the company's current annualized dividend of $1.64 is up 12.3% from last year. Over the last 5 years, Sonic Automotive has increased its dividend 5 times on a year-over-year basis for an average annual increase of 33.71%. Looking ahead, future dividend growth will be dependent on earnings growth and payout ratio, which is the proportion of a company's annual earnings per share that it pays out as a dividend. Sonic Automotive's current payout ratio is 26%, meaning it paid out 26% of its trailing 12-month EPS as dividend.

Earnings growth looks solid for SAH for this fiscal year. The Zacks Consensus Estimate for 2026 is $6.95 per share, which represents a year-over-year growth rate of 5.30%.

From greatly improving stock investing profits and reducing overall portfolio risk to providing tax advantages, investors like dividends for a variety of different reasons. But, not every company offers a quarterly payout.

Big, established firms that have more secure profits are often seen as the best dividend options, but it's fairly uncommon to see high-growth businesses or tech start-ups offer their stockholders a dividend. During periods of rising interest rates, income investors must be mindful that high-yielding stocks tend to struggle. With that in mind, SAH is a compelling investment opportunity. Not only is it a strong dividend play, but the stock currently sits at a Zacks Rank of #3 (Hold).

Sonic is now a $2.5 billion (by market cap) major dealership player employing more than 10,000 people. Sonic has increased its dividend for 11 consecutive years. Its 10-year dividend growth rate is 30.5%, which is obviously incredible and one of the highest I've yet come across. SAH has a tenuous financial position. Its long-term debt/equity ratio is 1.8, while the interest coverage ratio is approximately 2.

Key Takeaways Sonic Automotive's Q2 adjusted EPS beat estimates by 4%, while revenues rose 8% to $3.93 billion.EchoPark revenues rose 15% as retail used-vehicle sales volume increased 17%, but unit profit fell 12%.Sonic Automotive's Powersports revenues surged 53%, while new and used retail unit volumes rose sharply. Sonic Automotive, Inc. (SAH - Free Report) reported second-quarter 2026 adjusted earnings of $1.82 per share. Earnings declined 17% year over year but beat the Zacks Consensus Estimate of $1.75 by 4%. Revenues rose 8% to $3.93 billion and topped the consensus mark of $3.78 billion by 4%. The quarter benefited from higher retail new and used vehicle volumes and growth across EchoPark and Powersports segments.

At the consolidated level, gross profit rose 2% to $616.2 million. Adjusted SG&A expenses increased 6% to $443.4 million. Adjusted SG&A, as a percentage of gross profit, was 72.0% compared with 69.2% a year earlier. Adjusted net income fell 23% to $58.3 million.

SAH’s Franchise Revenues Rise as Vehicle Margins NarrowFranchised Dealerships segment revenues increased 6% year over year to $3.28 billion. New-vehicle revenues rose 5% to $1.76 billion, while used-vehicle revenues increased 9% to $814.3 million. Parts, service and collision repair revenues advanced 6% to $515.5 million, while finance, insurance and other revenues increased 2% to $147.9 million.

Retail new-vehicle unit volume rose 1%, and used-vehicle volume advanced 6%. Profit per vehicle remained under pressure. Reported retail new-vehicle gross profit per unit fell 11% to $3,024, while used-vehicle gross profit per unit declined 12% to $1,399.

Segment income was $70.7 million, down 23% from the year-ago period. Management cited difficult comparisons tied to pre-tariff consumer demand pull-forward in the second quarter of 2025.

Sonic’s EchoPark Growth Comes With Lower Unit ProfitEchoPark revenues increased 15% to $582.9 million, while gross profit rose 4% to a second-quarter record $64.3 million. Retail used-vehicle sales volume increased 17% as Sonic carried more affordable inventory and expanded its non-auction sourcing mix. Wholesale vehicle volumes increased 12%.

That volume growth came with lower per-unit economics. Total used-vehicle and F&I gross profit per unit fell 12% to $3,292. Segment income dropped 38% to $7.2 million, while adjusted EBITDA declined 15% to $13.9 million.

SAH’s Powersports Business Posts Strong ExpansionPowersports revenues surged 53% to a second-quarter record $73.5 million. Gross profit increased 58% to $19.7 million. New retail unit volume rose 27% to 1,775 units, while used retail volume jumped 61% to 1,317 units.

Finance and insurance revenues climbed 75% to $3.5 million, with F&I gross profit per unit up 27% to $1,125. Segment income improved to $2.3 million from breakeven, and adjusted EBITDA increased 145% to $4.9 million. The five Harley-Davidson dealerships acquired in April are expected to add about $100 million in annualized revenue.

SAH Raises New-Vehicle GPU View, Keeps Growth FocusSonic ended the quarter with about $294 million of cash and floor plan deposits and roughly $676 million of total available liquidity. The board approved a quarterly dividend of 41 cents per share, to be paid out on Oct. 15, 2026, to stockholders of record as of Sept. 15.

Management raised full-year new-vehicle gross profit per unit guidance to $2,850-$3,000 from $2,700-$3,000. EchoPark is still expected to deliver 12%-15% retail used-unit growth, total gross profit per unit of $3,100-$3,300 and adjusted EBITDA of $35-$40 million. Sonic also expects $8-$12 million of incremental EchoPark brand marketing expense in the fourth quarter and plans to open an Orlando location during the quarter.

Sonic currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Peer ReleasesPenske Automotive Group, Inc. (PAG - Free Report) reported second-quarter 2026 adjusted earnings of $3.62 per share, beating the Zacks Consensus Estimate of $3.38 by 7.1%. Adjusted earnings declined 4.2% from the comparable $3.78 per share a year ago. Penske’s revenues rose 6% year over year to $8.51 billion and topped the Zacks Consensus Estimate of $7.93 billion by 7.4%. For the first six months of 2026, cash flow from operations totaled $418 million and capital expenditures were $134.9 million. As of June 30, Penske’s liquidity was about $1.4 billion, including $69.5 million in cash.

Lithia Motors (LAD - Free Report) posted second-quarter 2026 adjusted earnings of $10.03 per share, which increased 9% from $9.20 a year ago. The bottom line beat the Zacks Consensus Estimate of $8.67 by 15.7%. Quarterly revenues increased 2.2% year over year to $9.79 billion and topped the consensus estimate of $9.64 billion by 1.6%. As of June 30, 2026, Lithia had cash, restricted cash and cash equivalents of $363.9 million, up from $341.8 million as of Dec. 31, 2025.During the quarter, Lithia repurchased roughly 854,000 shares at a weighted average price of $284, representing $242 million of share repurchases.

AutoNation, Inc. (AN - Free Report) reported second-quarter 2026 adjusted earnings of $5.56 per share, up 1.8% from $5.46 a year ago. Earnings beat the Zacks Consensus Estimate of $5.43 by 2.4%. Revenues of $6.93 billion declined 0.6% year over year and missed the consensus estimate of $6.97 billion by 0.6%. Parts and service revenues increased 3.4% year over year to $1.26 billion. Gross profit rose 1.4% to a record $607.1 million, making After-Sales the largest contributor to AutoNation's gross profit. As of June 30, 2026, AutoNation had cash and cash equivalents of $53.3 million. Non-vehicle debt was $4.43 billion.

Sonic Automotive NYSE: SAH reported record second-quarter revenue of $3.9 billion, up 8% from a year earlier, and all-time quarterly gross profit of $616.2 million, up 2%. Reported GAAP earnings were $1.79 per diluted share, while adjusted earnings were $1.82 per diluted share, Chairman and Chief Executive Officer David Smith said on the company’s second-quarter 2026 earnings call.

Smith said the company’s franchised dealerships, EchoPark used-vehicle business and Powersports operations all contributed to growth, while affordability pressures in the new-vehicle market continued to shape consumer demand and management’s operating strategy.

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Franchised dealership results and margin outlook Franchised dealership revenue increased 6% to $3.3 billion, while same-store revenue rose 2%. Reported gross profit for the segment rose 1%, but same-store gross profit declined 3%, reflecting difficult comparisons against elevated demand ahead of tariffs in the second quarter of 2025.

New-vehicle gross profit per unit remained above the company’s previous full-year outlook. Sonic raised its full-year new-vehicle GPU guidance to between $2,850 and $3,000, from its earlier range of $2,700 to $3,000. Second-quarter reported new-vehicle GPU was $3,024, down 11% year over year, and same-store new-vehicle GPU was $2,872, down 16%.

President Jeff Dyke said the company has been willing to be more aggressive on front-end margins while maintaining inventory turnover, supporting unit volume and F&I results. Same-store new-vehicle volume was flat, in line with industry trends.

Used-vehicle demand at franchised dealerships was stronger. Same-store retail used-vehicle volume increased 7%, as Sonic cited improving supply and its strategy to increase used-vehicle throughput. The company’s long-term objective is to average 100 used retail units per dealership per month, which it said represents about 25% organic volume growth potential from current levels.

Management said used-vehicle GPU could decline in the second half as it prioritizes volume and total gross-profit generation. Second-quarter reported used-vehicle GPU was $1,399, down 12%, while same-store used-vehicle GPU was $1,401, down 13%.

Fixed operations remains central focus Fixed operations gross profit rose 6% to a quarterly record of $263.8 million. Same-store fixed operations gross profit increased 2%, including a 1% increase in customer-pay gross profit and a 3% increase in warranty gross profit. Franchise dealership F&I gross profit increased 2% to a second-quarter record of $147.9 million, though same-store F&I gross profit declined 1% as F&I gross profit per unit fell 4%.

Fixed operations and F&I combined accounted for more than 75% of total gross profit during the quarter, Smith said.

Dyke described the industry’s fixed-operations growth as uneven in the second quarter and said Sonic is pursuing value pricing, marketing and improved customer awareness to capture service business from customers who do not return to dealerships for repairs. He said the company is focused on mid- to upper-single-digit fixed-operations growth, while CFO Heath Byrd pointed to potential efficiency gains from artificial intelligence initiatives.

Management maintained its outlook for mid-single-digit same-store fixed-operations gross-profit growth for the full year. The company also said consumers may retain vehicles longer amid affordability challenges, creating a longer-term service opportunity.

EchoPark volume accelerates as inventory mix changes EchoPark revenue increased 15% to $582.9 million and segment gross profit rose 4% to a second-quarter record of $64.3 million. Retail used-vehicle volume increased 17% to 19,601 units, outpacing the broader used-vehicle market, according to the company.

EchoPark’s total gross profit per unit declined 12% to $3,292. Used-vehicle front-end GPU declined 21% to $328, while F&I gross profit per unit fell 11% to $2,965. Management attributed the declines largely to a greater mix of more affordable, higher-mileage vehicles and battery-electric vehicles, which carry lower service-contract penetration and profit per contract.

EchoPark Chief Operating Officer Tim Keen said carrying more inventory and maintaining a value position with lower-priced vehicles supported unit growth. Danny Wieland, vice president of investor relations, said non-auction sourcing represented 42% of EchoPark sales in the second quarter, up from 32% in the first quarter.

Management said EchoPark was running above 25% unit growth in July. The company continues to target full-year retail used-vehicle volume growth of 12% to 15% and total GPU of $3,100 to $3,300 per unit. It expects additional F&I offerings for electric and smaller-segment vehicles to support margins.

EchoPark generated segment income of $7.2 million and adjusted EBITDA of $13.9 million, remaining on track for its full-year adjusted EBITDA guidance of $35 million to $40 million. The company expects to open an EchoPark location in Orlando in the fourth quarter and two to four additional locations in 2027. Keen said the timing of openings is driven by construction schedules.

Powersports growth and capital allocation Powersports revenue climbed 53% to a second-quarter record of $73.5 million, while gross profit increased 57% to $19.7 million. Same-store revenue and gross profit each rose 13%. The segment reported income of $2.3 million, compared with break-even results a year earlier, and adjusted EBITDA increased 145% to $4.9 million.

Smith said recently acquired Harley-Davidson dealerships in California, Florida, Georgia and North Carolina supported the segment’s growth. Management said the acquired locations were producing returns above expectations despite limited integration of Sonic’s operating approach.

At quarter-end, Sonic had approximately $676 million of total available liquidity, including roughly $294 million of cash and floor-plan deposits. Smith said the company sees acquisition opportunities in both franchised dealerships and Powersports, with management describing Powersports valuations as particularly compelling.

The board approved a quarterly cash dividend of $0.41 per share, payable Oct. 15 to shareholders of record on Sept. 15.

About Sonic Automotive (NYSE:SAH)Sonic Automotive, Inc is a publicly traded automotive retailer that operates a network of franchised new-car dealerships and used-vehicle dealerships across the United States. Headquartered in Charlotte, North Carolina, the company offers a range of services that include vehicle sales, leasing, finance and insurance products, service and parts, and collision repair. Sonic Automotive's dealerships represent numerous major automotive brands, and the company also markets a broad selection of pre-owned vehicles under its own banner.

In addition to its core dealership operations, Sonic Automotive has developed digital retail capabilities that allow customers to research, shop and complete transactions online.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected].

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Sonic Automotive (SAH - Free Report) reported $3.93 billion in revenue for the quarter ended June 2026, representing a year-over-year increase of 7.6%. EPS of $1.82 for the same period compares to $2.19 a year ago.

The reported revenue compares to the Zacks Consensus Estimate of $3.78 billion, representing a surprise of +4.06%. The company delivered an EPS surprise of +4%, with the consensus EPS estimate being $1.75.

While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their next move, some key metrics always offer a more accurate picture of a company's financial health.

Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance.

Here is how Sonic Automotive performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:

Powersports Segment - Same Store - Retail new vehicles: 1,433 versus the two-analyst average estimate of 1,652.Franchised Dealerships Segment - Unit Sales Volume - Retail New and Used Vehicle: 54,847 compared to the 52,538 average estimate based on two analysts.Franchised Dealerships Segment - Same Store - Unit Sales Volume - Retail new & used vehicles: 53,505 versus the two-analyst average estimate of 52,386.EchoPark Segment - Same Market - Unit Sales Volume - Used vehicles: 19,601 compared to the 18,487 average estimate based on two analysts.Revenues- Franchised Dealerships Segment- Same Store- Total: $3.13 billion versus $2.69 billion estimated by two analysts on average. Compared to the year-ago quarter, this number represents a +2% change.Revenues- Powersports: $73.5 million versus $69.23 million estimated by two analysts on average. Compared to the year-ago quarter, this number represents a +52.8% change.Revenues- Total new vehicles: $1.79 billion versus the two-analyst average estimate of $1.71 billion. The reported number represents a year-over-year change of +5.8%.Revenues- Used vehicles: $1.33 billion versus the two-analyst average estimate of $1.26 billion. The reported number represents a year-over-year change of +12.6%.Revenues- Wholesale vehicles: $70.5 million compared to the $85.61 million average estimate based on two analysts. The reported number represents a change of -15.4% year over year.Revenues- Parts, service and collision repair: $530.2 million versus the two-analyst average estimate of $527.18 million. The reported number represents a year-over-year change of +7%.Revenues- Finance, insurance and other, net: $209.5 million compared to the $205.7 million average estimate based on two analysts. The reported number represents a change of +3.7% year over year.Revenues- New vehicles- Fleet: $24.8 million compared to the $21.5 million average estimate based on two analysts. The reported number represents a change of -15.7% year over year.View all Key Company Metrics for Sonic Automotive here>>>

Shares of Sonic Automotive have returned +35.7% over the past month versus the Zacks S&P 500 composite's -1.5% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term.

CHARLOTTE, N.C.--(BUSINESS WIRE)--Sonic Automotive, Inc. (“Sonic Automotive,” “Sonic,” the “Company,” “we,” “us” or “our”) (NYSE:SAH), one of the nation's largest automotive retailers, today reported financial results for the second quarter ended June 30, 2026. Second Quarter 2026 Financial Summary Second quarter total revenues of $3.9 billion, up 8% year-over-year; second quarter record total gross profit of $616.2 million, up 2% year-over-year Reported net income in the second quarter was $57.

Posted by Defense World Staff on Jul 26th, 2026

Sonic Automotive, Inc. (NYSE:SAH – Get Free Report) has received an average rating of “Hold” from the eleven analysts that are currently covering the company, Marketbeat.com reports. One investment analyst has rated the stock with a sell rating, five have given a hold rating and five have issued a buy rating on the company. The average 12-month target price among analysts that have issued ratings on the stock in the last year is $90.6667.

Several equities analysts have recently weighed in on the company. Seaport Research Partners downgraded Sonic Automotive from a “buy” rating to a “neutral” rating and raised their target price for the company from $185.00 to $205.00 in a research report on Friday, July 17th. JPMorgan Chase & Co. dropped their price target on Sonic Automotive from $77.00 to $76.00 and set an “underweight” rating for the company in a research report on Monday, July 13th. Weiss Ratings raised Sonic Automotive from a “hold (c)” rating to a “hold (c+)” rating in a research note on Thursday. Stephens set a $89.00 price objective on Sonic Automotive in a report on Monday, July 13th. Finally, Barclays lifted their target price on shares of Sonic Automotive from $77.00 to $92.00 and gave the stock an “equal weight” rating in a research note on Wednesday, July 15th.

View Our Latest Analysis on SAH

Insider Buying and Selling at Sonic Automotive In related news, President Jeff Dyke sold 50,000 shares of the business’s stock in a transaction dated Monday, June 8th. The shares were sold at an average price of $82.97, for a total transaction of $4,148,500.00. Following the transaction, the president directly owned 111,622 shares in the company, valued at approximately $9,261,277.34. The trade was a 30.94% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 100,000 shares of company stock valued at $8,408,160 over the last quarter. Company insiders own 43.68% of the company’s stock.

Institutional Trading of Sonic Automotive A number of hedge funds have recently bought and sold shares of the business. Tudor Investment Corp ET AL grew its position in shares of Sonic Automotive by 41.2% in the third quarter. Tudor Investment Corp ET AL now owns 183,522 shares of the company’s stock valued at $13,964,000 after purchasing an additional 53,510 shares in the last quarter. BNP Paribas Financial Markets lifted its position in Sonic Automotive by 70.8% during the fourth quarter. BNP Paribas Financial Markets now owns 181,189 shares of the company’s stock worth $11,208,000 after buying an additional 75,125 shares in the last quarter. Heartland Advisors Inc. acquired a new position in Sonic Automotive during the first quarter worth $8,450,000. Louisiana State Employees Retirement System purchased a new stake in Sonic Automotive in the 1st quarter valued at $453,000. Finally, ProShare Advisors LLC grew its holdings in Sonic Automotive by 22.3% in the 4th quarter. ProShare Advisors LLC now owns 94,898 shares of the company’s stock valued at $5,870,000 after buying an additional 17,286 shares in the last quarter. Institutional investors and hedge funds own 46.92% of the company’s stock.

Sonic Automotive Stock Up 0.8% SAH opened at $99.89 on Thursday. The company has a market cap of $3.16 billion, a PE ratio of 31.81, a price-to-earnings-growth ratio of 1.53 and a beta of 0.89. Sonic Automotive has a twelve month low of $54.11 and a twelve month high of $104.30. The company has a 50-day moving average price of $85.80 and a 200 day moving average price of $72.60. The company has a quick ratio of 0.29, a current ratio of 1.03 and a debt-to-equity ratio of 1.93.

Sonic Automotive (NYSE:SAH – Get Free Report) last posted its quarterly earnings data on Thursday, April 30th. The company reported $1.62 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.40 by $0.22. Sonic Automotive had a return on equity of 22.45% and a net margin of 0.72%.The company had revenue of $3.69 billion for the quarter, compared to analysts’ expectations of $3.73 billion. During the same period in the previous year, the firm posted $1.48 EPS. Sonic Automotive’s revenue was up 1.0% compared to the same quarter last year. Sell-side analysts expect that Sonic Automotive will post 6.93 earnings per share for the current fiscal year.

Sonic Automotive Increases Dividend The firm also recently announced a quarterly dividend, which was paid on Wednesday, July 15th. Stockholders of record on Monday, June 15th were given a $0.41 dividend. This represents a $1.64 dividend on an annualized basis and a dividend yield of 1.6%. This is a positive change from Sonic Automotive’s previous quarterly dividend of $0.38. The ex-dividend date was Monday, June 15th. Sonic Automotive’s dividend payout ratio (DPR) is currently 52.23%.

About Sonic Automotive (Get Free Report)

Sonic Automotive, Inc is a publicly traded automotive retailer that operates a network of franchised new-car dealerships and used-vehicle dealerships across the United States. Headquartered in Charlotte, North Carolina, the company offers a range of services that include vehicle sales, leasing, finance and insurance products, service and parts, and collision repair. Sonic Automotive’s dealerships represent numerous major automotive brands, and the company also markets a broad selection of pre-owned vehicles under its own banner.

In addition to its core dealership operations, Sonic Automotive has developed digital retail capabilities that allow customers to research, shop and complete transactions online.

Further Reading Five stocks we like better than Sonic Automotive Telecom Earnings Reveal a Sector That Finally Looks Healthier Defense Earnings Show Readiness Now and Modernization Ahead Why Palantir Investors Aren’t Panicking While the Rest of AI Sells Off MarketBeat Week in Review – 07/20- 07/24

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What are the Zacks Style Scores? The Zacks Style Scores is a unique set of guidelines that rates stocks based on three popular investing types, and were developed as complementary indicators for the Zacks Rank. This combination helps investors choose securities with the highest chances of beating the market over the next 30 days.

Based on their value, growth, and momentum characteristics, each stock is assigned a rating of A, B, C, D, or F. The better the score, the better chance the stock will outperform; an A is better than a B, a B is better than a C, and so on.

The Style Scores are broken down into four categories:

Value ScoreFinding good stocks at good prices, and discovering which companies are trading under their true value, are what value investors like to focus on. So, the Value Style Score takes into account ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and a host of other multiples to highlight the most attractive and discounted stocks.

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Momentum ScoreMomentum trading is all about taking advantage of upward or downward trends in a stock's price or earnings outlook, and these investors live by the saying "the trend is your friend." The Momentum Style Score can pinpoint good times to build a position in a stock, using factors like one-week price change and the monthly percentage change in earnings estimates.

VGM ScoreIf you like to use all three kinds of investing, then the VGM Score is for you. It's a combination of all Style Scores, and is an important indicator to use with the Zacks Rank. The VGM Score rates each stock on their shared weighted styles, narrowing down the companies with the most attractive value, best growth forecast, and most promising momentum.

How Style Scores Work with the Zacks Rank The Zacks Rank, which is a proprietary stock-rating model, employs earnings estimate revisions, or changes to a company's earnings expectations, to make building a winning portfolio easier.

It's highly successful, with #1 (Strong Buy) stocks producing an unmatched +23.94% average annual return since 1988. That's more than double the S&P 500. But because of the large number of stocks we rate, there are over 200 companies with a Strong Buy rank, plus another 600 with a #2 (Buy) rank, on any given day.

With more than 800 top-rated stocks to choose from, it can certainly feel overwhelming to pick the ones that are right for you and your investing journey.

That's where the Style Scores come in.

To maximize your returns, you want to buy stocks with the highest probability of success. This means picking stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B. If you find yourself looking at stocks with a #3 (Hold) rank, make sure they have Scores of A or B as well to ensure as much upside potential as possible.

Since the Scores were created to work together with the Zacks Rank, the direction of a stock's earnings estimate revisions should be a key factor when choosing which stocks to buy.

Here's an example: a stock with a #4 (Sell) or #5 (Strong Sell) rating, even one with Style Scores of A and B, still has a downward-trending earnings outlook, and a bigger chance its share price will decrease too.

Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.

Stock to Watch: Sonic Automotive (SAH - Free Report) Sonic Automotive is one of the leading automotive retailers in the United States. Apart from selling new and used cars and light trucks, the company offers warranties, service contracts, vehicle financing and insurance. Further, it provides maintenance and repair services, and sells replacement parts and aftermarket automotive products. Each sale of a new or used vehicle comes with financing and insurance options and helps the firm earn financing fees and insurance and other aftermarket product commissions. Each of the company’s franchised dealerships include a fully integrated service and parts department.

SAH is a #2 (Buy) on the Zacks Rank, with a VGM Score of A.

It also boasts a Value Style Score of A thanks to attractive valuation metrics like a forward P/E ratio of 14.55; value investors should take notice.

For fiscal 2026, two analysts revised their earnings estimate upwards in the last 60 days, and the Zacks Consensus Estimate has increased $0.14 to $6.93 per share. SAH boasts an average earnings surprise of +5.5%.

With a solid Zacks Rank and top-tier Value and VGM Style Scores, SAH should be on investors' short list.

In the second quarter, the Heartland Value Fund gained 17.05%, compared with the 17.19% return for the Russell 2000 Value Index. Earlier this year, we reduced our stake in Photronics, a leading manufacturer of photomasks that are used to transfer circuit patterns onto semiconductor wafers and flat panel substrates during the fabrication process. i3 Verticals' shares slumped from around $34 last fall to below $20 in May over concerns that emerging automation and machine learning technologies are disrupting software stocks.

While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.

Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.

Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.

One company to watch right now is Sonic Automotive (SAH - Free Report) . SAH is currently holding a Zacks Rank #2 (Buy) and a Value grade of A.

We also note that SAH holds a PEG ratio of 0.63. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. SAH's industry currently sports an average PEG of 0.92. Within the past year, SAH's PEG has been as high as 0.74 and as low as 0.44, with a median of 0.53.

Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. SAH has a P/S ratio of 0.19. This compares to its industry's average P/S of 0.22.

Finally, we should also recognize that SAH has a P/CF ratio of 8.93. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. SAH's current P/CF looks attractive when compared to its industry's average P/CF of 11.02. Within the past 12 months, SAH's P/CF has been as high as 10.08 and as low as 5.06, with a median of 6.80.

These are only a few of the key metrics included in Sonic Automotive's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, SAH looks like an impressive value stock at the moment.

On July 09, 2026, Sonic Automotive Inc (SAH) shares rose 8.3% to $95.31. The stock has demonstrated significant price performance, with a year-to-date increase

For new and old investors, taking full advantage of the stock market and investing with confidence are common goals. Zacks Premium provides lots of different ways to do both.

The research service features daily updates of the Zacks Rank and Zacks Industry Rank, full access to the Zacks #1 Rank List, Equity Research reports, and Premium stock screens, all of which will help you become a smarter, more confident investor.

It also includes access to the Zacks Style Scores.

What are the Zacks Style Scores? The Zacks Style Scores is a unique set of guidelines that rates stocks based on three popular investing types, and were developed as complementary indicators for the Zacks Rank. This combination helps investors choose securities with the highest chances of beating the market over the next 30 days.

Based on their value, growth, and momentum characteristics, each stock is assigned a rating of A, B, C, D, or F. The better the score, the better chance the stock will outperform; an A is better than a B, a B is better than a C, and so on.

The Style Scores are broken down into four categories:

Value ScoreFor value investors, it's all about finding good stocks at good prices, and discovering which companies are trading under their true value before the broader market catches on. The Value Style Score utilizes ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and a host of other multiples to help pick out the most attractive and discounted stocks.

Growth ScoreWhile good value is important, growth investors are more focused on a company's financial strength and health, and its future outlook. The Growth Style Score takes projected and historic earnings, sales, and cash flow into account to uncover stocks that will see long-term, sustainable growth.

Momentum ScoreMomentum trading is all about taking advantage of upward or downward trends in a stock's price or earnings outlook, and these investors live by the saying "the trend is your friend." The Momentum Style Score can pinpoint good times to build a position in a stock, using factors like one-week price change and the monthly percentage change in earnings estimates.

VGM ScoreWhat if you like to use all three types of investing? The VGM Score is a combination of all Style Scores, making it one of the most comprehensive indicators to use with the Zacks Rank. It rates each stock on their combined weighted styles, which helps narrow down the companies with the most attractive value, best growth forecast, and most promising momentum.

How Style Scores Work with the Zacks Rank The Zacks Rank, which is a proprietary stock-rating model, employs earnings estimate revisions, or changes to a company's earnings expectations, to make building a winning portfolio easier.

It's highly successful, with #1 (Strong Buy) stocks producing an unmatched +23.94% average annual return since 1988. That's more than double the S&P 500. But because of the large number of stocks we rate, there are over 200 companies with a Strong Buy rank, plus another 600 with a #2 (Buy) rank, on any given day.

This totals more than 800 top-rated stocks, and it can be overwhelming to try and pick the best stocks for you and your portfolio.

That's where the Style Scores come in.

To have the best chance of big returns, you'll want to always consider stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B, which will give you the highest probability of success. If you're looking at stocks with a #3 (Hold) rank, it's important they have Scores of A or B as well to ensure as much upside potential as possible.

As mentioned above, the Scores are designed to work with the Zacks Rank, so any change to a company's earnings outlook should be a deciding factor when picking which stocks to buy.

For instance, a stock with a #4 (Sell) or #5 (Strong Sell) rating, even one that boasts Scores of A and B, still has a downward-trending earnings forecast, and a much greater likelihood its share price will decline as well.

Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.

Stock to Watch: Sonic Automotive (SAH - Free Report) Sonic Automotive is one of the leading automotive retailers in the United States. Apart from selling new and used cars and light trucks, the company offers warranties, service contracts, vehicle financing and insurance. Further, it provides maintenance and repair services, and sells replacement parts and aftermarket automotive products. Each sale of a new or used vehicle comes with financing and insurance options and helps the firm earn financing fees and insurance and other aftermarket product commissions. Each of the company’s franchised dealerships include a fully integrated service and parts department.

SAH is a #3 (Hold) on the Zacks Rank, with a VGM Score of A.

Additionally, the company could be a top pick for growth investors. SAH has a Growth Style Score of B, forecasting year-over-year earnings growth of 4.9% for the current fiscal year.

One analyst revised their earnings estimate higher in the last 60 days for fiscal 2026, while the Zacks Consensus Estimate has increased $0.12 to $6.92 per share. SAH also boasts an average earnings surprise of +5.5%.

With a solid Zacks Rank and top-tier Growth and VGM Style Scores, SAH should be on investors' short list.

It doesn't matter your age or experience: taking full advantage of the stock market and investing with confidence are common goals for all investors. Luckily, Zacks Premium offers several different ways to do both.

The popular research service can help you become a smarter, more self-assured investor, giving you access to daily updates of the Zacks Rank and Zacks Industry Rank, the Zacks #1 Rank List, Equity Research reports, and Premium stock screens.

Zacks Premium also includes the Zacks Style Scores.

What are the Zacks Style Scores? The Zacks Style Scores, developed alongside the Zacks Rank, are complementary indicators that rate stocks based on three widely-followed investing methodologies; they also help investors pick stocks with the best chances of beating the market over the next 30 days.

Each stock is given an alphabetic rating of A, B, C, D or F based on their value, growth, and momentum qualities. With this system, an A is better than a B, a B is better than a C, and so on, meaning the better the score, the better chance the stock will outperform.

The Style Scores are broken down into four categories:

Value ScoreFinding good stocks at good prices, and discovering which companies are trading under their true value, are what value investors like to focus on. So, the Value Style Score takes into account ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and a host of other multiples to highlight the most attractive and discounted stocks.

Growth ScoreGrowth investors, on the other hand, are more concerned with a company's financial strength and health, and its future outlook. The Growth Style Score examines things like projected and historic earnings, sales, and cash flow to find stocks that will experience sustainable growth over time.

Momentum ScoreMomentum investors, who live by the saying "the trend is your friend," are most interested in taking advantage of upward or downward trends in a stock's price or earnings outlook. Utilizing one-week price change and the monthly percentage change in earnings estimates, among other factors, the Momentum Style Score can help determine favorable times to buy high-momentum stocks.

VGM ScoreIf you like to use all three kinds of investing, then the VGM Score is for you. It's a combination of all Style Scores, and is an important indicator to use with the Zacks Rank. The VGM Score rates each stock on their shared weighted styles, narrowing down the companies with the most attractive value, best growth forecast, and most promising momentum.

How Style Scores Work with the Zacks Rank A proprietary stock-rating model, the Zacks Rank utilizes the power of earnings estimate revisions, or changes to a company's earnings outlook, to help investors create a successful portfolio.

Investors can count on the Zacks Rank's success, with #1 (Strong Buy) stocks producing an unmatched +23.94% average annual return since 1988, more than double the S&P 500's performance. But the model rates a large number of stocks, and there are over 200 companies with a Strong Buy rank, plus another 600 with a #2 (Buy) rank, on any given day.

With more than 800 top-rated stocks to choose from, it can certainly feel overwhelming to pick the ones that are right for you and your investing journey.

That's where the Style Scores come in.

You want to make sure you're buying stocks with the highest likelihood of success, and to do that, you'll need to pick stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B. If you like a stock that only has a #3 (Hold) rank, it should also have Scores of A or B to guarantee as much upside potential as possible.

As mentioned above, the Scores are designed to work with the Zacks Rank, so any change to a company's earnings outlook should be a deciding factor when picking which stocks to buy.

For instance, a stock with a #4 (Sell) or #5 (Strong Sell) rating, even one that boasts Scores of A and B, still has a downward-trending earnings forecast, and a much greater likelihood its share price will decline as well.

Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.

Stock to Watch: Sonic Automotive (SAH - Free Report) Sonic Automotive is one of the leading automotive retailers in the United States. Apart from selling new and used cars and light trucks, the company offers warranties, service contracts, vehicle financing and insurance. Further, it provides maintenance and repair services, and sells replacement parts and aftermarket automotive products. Each sale of a new or used vehicle comes with financing and insurance options and helps the firm earn financing fees and insurance and other aftermarket product commissions. Each of the company’s franchised dealerships include a fully integrated service and parts department.

SAH is a #3 (Hold) on the Zacks Rank, with a VGM Score of A.

It also boasts a Value Style Score of A thanks to attractive valuation metrics like a forward P/E ratio of 12.11; value investors should take notice.

Three analysts revised their earnings estimate upwards in the last 60 days for fiscal 2026. The Zacks Consensus Estimate has increased $0.28 to $6.92 per share. SAH boasts an average earnings surprise of +5.5%.

With a solid Zacks Rank and top-tier Value and VGM Style Scores, SAH should be on investors' short list.

I change my rating for Sonic Automotive from 'Hold' to 'Buy', after assessing its near- and long-term prospects. SAH has a good chance of beating Q2 consensus revenue estimates, given that the industry and its key OEM partner have done well in the recent month. A stabilization of used vehicle pricing and a proposal to widen the EchoPark footprint bode well for SAH's under-penetrated used car business.

President Sells 50,000 Shares for $4.3 MillionSonic Automotive (SAH 0.07%), a major U.S. auto retailer, reported a notable insider sale amid ongoing shifts in executive shareholdings.

On June 9 and June 10, Jeff Dyke, President of Sonic Automotive, reported the direct sale of 50,000 shares of Common Stock in multiple open-market transactions, as disclosed in this SEC Form 4 filing.

Transaction summaryMetricValueShares sold (direct)50,000Transaction value$4.3 millionPost-transaction shares (direct)543,668Post-transaction shares (indirect)111,622Post-transaction value (direct ownership)~$45.7 millionTransaction value based on SEC Form 4 weighted average purchase price ($85.19); post-transaction value based on June 10 market close.

Key questionsWhat proportion of Dyke’s direct holdings was impacted in this transaction?
The sale accounted for 7.1% of Dyke’s direct holdings at the time, leaving him with a substantial continuing ownership stake in both direct and indirect accounts.Were any shares sold from indirect holdings or through derivative transactions?
No shares were sold from indirect holdings or via derivative securities; all shares disposed in this transaction were directly held common stock.Company overviewMetricValueRevenue (TTM)$15.2 billionNet income (TTM)$108.9 millionDividend yield2.0%Price (as of market close June 10)$84.15Company snapshotSonic Automotive is a U.S. automotive retailer, operating through a network of franchised dealerships and EchoPark used vehicle stores across multiple states. The company offers new and pre-owned vehicles, while also offering comprehensive after-sales and finance solutions.

Offers new and pre-owned vehicle sales, replacement parts, maintenance, warranty repairs, collision repair, and finance and insurance products through franchised dealerships and EchoPark specialty stores.Serves retail automotive consumers across the United States, targeting both new car buyers and value-focused used car customers.Generates revenue primarily from vehicle sales, parts and service operations, and the sale of finance and insurance products, leveraging a dual-segment model to address both new and used car markets.What this transaction means for investorsInvestors should read neither positive nor negative signals from President Dyke’s recent share sale activity. While key insider selling could signal a bearish signal, that’s not the case here.

Dyke set up a 10b5-1 trading plan. This sets the terms of his sales activity ahead of time in an effort to avoid accusations that key officers and directors traded ahead of material insider information. His recent sales activity was conducted under this arrangement.

Additionally, Sonic Automotive’s president still holds substantial shares in the company. He directly holds 543,668 shares and indirectly, through an LLC, owns another 111,622 shares. The combined 655,290 shares have a value of about $55 million.

Looking at returns, Sonic Automotive’s stock performance has lagged the overall market lately. The shares returned 13.9% over the last year through June 15, trailing the S&P 500 index’s 28%. Both factor dividends into the total return.

Lawrence Rothman, CFA has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

It doesn't matter your age or experience: taking full advantage of the stock market and investing with confidence are common goals for all investors. Luckily, Zacks Premium offers several different ways to do both.

The popular research service can help you become a smarter, more self-assured investor, giving you access to daily updates of the Zacks Rank and Zacks Industry Rank, the Zacks #1 Rank List, Equity Research reports, and Premium stock screens.

Zacks Premium also includes the Zacks Style Scores.

What are the Zacks Style Scores? The Zacks Style Scores is a unique set of guidelines that rates stocks based on three popular investing types, and were developed as complementary indicators for the Zacks Rank. This combination helps investors choose securities with the highest chances of beating the market over the next 30 days.

Based on their value, growth, and momentum characteristics, each stock is assigned a rating of A, B, C, D, or F. The better the score, the better chance the stock will outperform; an A is better than a B, a B is better than a C, and so on.

The Style Scores are broken down into four categories:

Value ScoreFor value investors, it's all about finding good stocks at good prices, and discovering which companies are trading under their true value before the broader market catches on. The Value Style Score utilizes ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and a host of other multiples to help pick out the most attractive and discounted stocks.

Growth ScoreGrowth investors, on the other hand, are more concerned with a company's financial strength and health, and its future outlook. The Growth Style Score examines things like projected and historic earnings, sales, and cash flow to find stocks that will experience sustainable growth over time.

Momentum ScoreMomentum trading is all about taking advantage of upward or downward trends in a stock's price or earnings outlook, and these investors live by the saying "the trend is your friend." The Momentum Style Score can pinpoint good times to build a position in a stock, using factors like one-week price change and the monthly percentage change in earnings estimates.

VGM ScoreIf you want a combination of all three Style Scores, then the VGM Score will be your friend. It rates each stock on their combined weighted styles, helping you find the companies with the most attractive value, best growth forecast, and most promising momentum. It's also one of the best indicators to use with the Zacks Rank.

How Style Scores Work with the Zacks Rank The Zacks Rank, which is a proprietary stock-rating model, employs earnings estimate revisions, or changes to a company's earnings expectations, to make building a winning portfolio easier.

#1 (Strong Buy) stocks have produced an unmatched +24% average annual return since 1988, which is more than double the S&P 500's performance over the same time frame. However, the Zacks Rank examines a ton of stocks, and there can be more than 200 companies with a Strong Buy rank, and another 600 with a #2 (Buy) rank, on any given day.

With more than 800 top-rated stocks to choose from, it can certainly feel overwhelming to pick the ones that are right for you and your investing journey.

That's where the Style Scores come in.

To maximize your returns, you want to buy stocks with the highest probability of success. This means picking stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B. If you find yourself looking at stocks with a #3 (Hold) rank, make sure they have Scores of A or B as well to ensure as much upside potential as possible.

The direction of a stock's earnings estimate revisions should always be a key factor when choosing which stocks to buy, since the Scores were created to work together with the Zacks Rank.

For instance, a stock with a #4 (Sell) or #5 (Strong Sell) rating, even one that boasts Scores of A and B, still has a downward-trending earnings forecast, and a much greater likelihood its share price will decline as well.

Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.

Stock to Watch: Sonic Automotive (SAH - Free Report) Sonic Automotive is one of the leading automotive retailers in the United States. Apart from selling new and used cars and light trucks, the company offers warranties, service contracts, vehicle financing and insurance. Further, it provides maintenance and repair services, and sells replacement parts and aftermarket automotive products. Each sale of a new or used vehicle comes with financing and insurance options and helps the firm earn financing fees and insurance and other aftermarket product commissions. Each of the company’s franchised dealerships include a fully integrated service and parts department.

SAH is a #2 (Buy) on the Zacks Rank, with a VGM Score of A.

Additionally, the company could be a top pick for growth investors. SAH has a Growth Style Score of B, forecasting year-over-year earnings growth of 4.9% for the current fiscal year.

For fiscal 2026, five analysts revised their earnings estimate upwards in the last 60 days, and the Zacks Consensus Estimate has increased $0.38 to $6.92 per share. SAH boasts an average earnings surprise of +5.5%.

With a solid Zacks Rank and top-tier Growth and VGM Style Scores, SAH should be on investors' short list.

Sonic Reported First Quarter Record Consolidated Revenues and Gross Profit

Sonic's EchoPark Segment Achieved All-Time Record Quarterly Pre-Tax Income and Adjusted EBITDA*

During the First Quarter, Sonic Repurchased Approximately 2.1 Million Shares of its Class A Common Stock, Representing a 6% Reduction In Outstanding Shares from December 31, 2025

CHARLOTTE, N.C.--(BUSINESS WIRE)--Sonic Automotive, Inc. (“Sonic Automotive,” “Sonic,” the “Company,” “we” “us” or “our”) (NYSE:SAH), one of the nation’s largest automotive retailers, today reported financial results for the first quarter ended March 31, 2026.

First Quarter 2026 Financial Summary

First quarter record total revenues of $3.7 billion, up 1% year-over-year; first quarter record total gross profit of $598.8 million, up 6% year-over-year Reported net income in the first quarter was $60.8 million, down 14% year-over-year ($1.79 earnings per share, down 12% year-over-year) Reported net income for the first quarter of 2026 includes a $5.1 million pre-tax disposition-related net gain and a $3.6 million pre-tax gain related to the exit of leased dealerships, partially offset by a $0.4 million pre-tax impairment charge related to capital improvement projects (collectively, these items are partially offset by a $2.4 million income tax expense on the above net benefit) Reported net income for the first quarter of 2025 includes the effect of a $30.0 million pre-tax gain from cyber insurance proceeds, offset partially by a $1.4 million non-cash pre-tax impairment charge, a $1.0 million pre-tax disposition related net loss, and a $0.9 million pre-tax charge related to storm damage (collectively, these items are partially offset by a $7.4 million tax expense on the above net benefit) Excluding the above items, adjusted net income* for the first quarter of 2026 was $54.9 million, up 7% year-over-year ($1.62 adjusted earnings per diluted share*, up 9% year-over-year) Total reported selling, general and administrative (“SG&A”) expenses as a percentage of gross profit of 71.3% (71.9% on a Franchised Dealerships Segment basis, 62.9% on an EchoPark Segment basis, and 97.7% on a Powersports Segment basis) Total adjusted SG&A expenses as a percentage of gross profit* of 72.8% (72.9% on a Franchised Dealerships Segment basis, 68.2% on an EchoPark Segment basis, and 97.7% on a Powersports Segment basis) EchoPark Segment revenues of $580.5 million, up 4% year-over-year; all-time record quarterly EchoPark Segment total gross profit of $67.9 million, up 6% year-over-year; EchoPark Segment retail used vehicle unit sales volume of 19,326, up 3% year-over-year All-time record quarterly reported EchoPark Segment income of $16.2 million, as compared to $10.3 million in the prior year period, a 57% increase year-over-year All-time record quarterly adjusted EchoPark Segment income* of $12.6 million, as compared to $10.1 million in the prior year period, a 25% increase year-over-year All-time record quarterly EchoPark Segment adjusted EBITDA* of $18.6 million, as compared to $15.8 million adjusted EBITDA* in the prior year period, up 18% year-over-year Previously announced acquisition of Space Coast Harley-Davidson, Treasure Coast Harley-Davidson, Falcons Fury Harley-Davidson, Raging Bull Harley-Davidson, and San Diego Harley-Davidson in April 2026 is expected to add approximately $100 million in annualized revenue to Sonic's Powersports Segment During the first quarter, Sonic disposed of four Franchised Dealerships, which generated $113.5 million in revenues in 2025 and $58.7 million in gross proceeds from disposition During the first quarter, Sonic repurchased approximately 2.1 million shares of its Class A common stock for an aggregate purchase price of approximately $135.7 million, representing a 6% reduction in outstanding shares from December 31, 2025 In April 2026, Sonic's Board of Directors approved $500 million in additional share repurchase authorization, increasing the total remaining share repurchase authorization to $528 million Sonic’s Board of Directors approved an 8% increase to the quarterly cash dividend, to $0.41 per share, payable on July 15, 2026 to all stockholders of record on June 15, 2026 * Represents a non-GAAP financial measure — please refer to the discussion and reconciliation of non-GAAP financial measures below.

Commentary

David Smith, Chairman and Chief Executive Officer of Sonic Automotive, stated, “I am grateful for our team's efforts in the first quarter, which delivered several first quarter and all-time quarterly records across our operating segments. Our Franchised Dealerships built on fourth quarter momentum to deliver record consolidated first quarter revenue, and our EchoPark team capitalized on a strong tax refund season to deliver an all-time record adjusted EBITDA* of $18.6 million while continuing to provide a world-class guest experience. We are also excited to expand our Powersports segment in the great riding states of California, Florida, Georgia, and North Carolina. The acquisition of five new Harley-Davidson dealerships establishes Sonic Powersports as one of the fastest growing powersports retailers in the country and reinforces our commitment to diversifying our revenue base and enhancing shareholder returns.”

Jeff Dyke, President of Sonic Automotive, commented, “Despite tough year-over-year comparisons, our team outperformed on several key operating metrics. In our Franchised Dealerships segment, our focus on technician hiring and retention resulted in first quarter record fixed operations gross profit, up 10% year-over-year. Continued improvements in our finance and insurance operations led to first quarter records in both total gross profit and gross profit per unit. At EchoPark, our team once again proved that executing on our playbook will drive industry leading returns. With all-time records in quarterly segment total gross profit, pre-tax income, and adjusted EBITDA*, we remain confident in the long-term potential of the EchoPark brand and our plan to resume disciplined expansion of our EchoPark footprint in late 2026, supported by a strategic brand marketing investment beginning in mid-2026.”

Heath Byrd, Chief Financial Officer of Sonic Automotive, added, “As of March 31, 2026, we had approximately $381 million in cash and floor plan deposits on hand, with total liquidity of approximately $770 million. As we move through 2026, we will continue to seek opportunities to strategically deploy capital as markets evolve."

First Quarter 2026 Segment Highlights

The financial measures discussed below are results for the first quarter of 2026 with comparisons made to the first quarter of 2025, unless otherwise noted.

Franchised Dealerships Segment operating results include: Same store revenues down 4%; same store gross profit flat Same store retail new vehicle unit sales volume down 10%; same store retail new vehicle gross profit per unit down 4%, to $3,002 Same store retail used vehicle unit sales volume up 3%; same store retail used vehicle gross profit per unit down 4%, to $1,533 Same store parts, service and collision repair (“Fixed Operations”) gross profit up 5%; same store customer pay gross profit up 5%; same store warranty gross profit up 7%; same store Fixed Operations gross profit margin up 40 basis points, to 51.1% Same store finance and insurance (“F&I”) gross profit up 2%; same store F&I gross profit per retail unit of $2,594, up 6% On a trailing quarter cost of sales basis, the Franchised Dealerships Segment had 58 days’ supply of new vehicle inventory (including in-transit) and 32 days’ supply of used vehicle inventory EchoPark Segment operating results include: Revenues of $580.5 million, up 4%; gross profit of $67.9 million, up 6% Retail used vehicle unit sales volume of 19,326, up 3% All-time record quarterly reported segment income of $16.2 million, all-time record quarterly adjusted segment income* of $12.6 million, and all-time record quarterly adjusted EBITDA* of $18.6 million On a trailing quarter cost of sales basis, the EchoPark Segment had 40 days’ supply of used vehicle inventory Powersports Segment operating results include: First quarter record revenues of $40.9 million, up 19%; first quarter record gross profit of $10.1 million, up 19% Segment loss of $2.0 million, a 43% improvement from a segment loss of $3.5 million in the prior year period, and adjusted EBITDA loss* of $0.1 million, an 86% improvement from an adjusted EBITDA loss* of $0.7 million in the prior year period (note that the first quarter has seasonally lower demand ahead of peak powersports industry demand in the second and third quarters) * Represents a non-GAAP financial measure — please refer to the discussion and reconciliation of non-GAAP financial measures below.

Dividend

Sonic’s Board of Directors approved an 8% increase to the quarterly cash dividend, to $0.41 per share, payable on July 15, 2026 to all stockholders of record on June 15, 2026.

First Quarter 2026 Earnings Conference Call

Senior management will hold a conference call today at 11:00 A.M. (Eastern). Investor presentation and earnings press release materials will be accessible beginning prior to the conference call on the Company’s website at ir.sonicautomotive.com.

To access the live webcast of the conference call, please go to ir.sonicautomotive.com and select the webcast link at the top of the page. For telephone access to this conference call, please dial (877) 407-8289 (domestic) or +1 (201) 689-8341 (international) and ask to be connected to the Sonic Automotive First Quarter 2026 Earnings Conference Call. Dial-in access remains available throughout the live call; however, to ensure you are connected for the full call we suggest dialing in at least 10 minutes before the start of the call. A webcast replay will be available following the call for 14 days at ir.sonicautomotive.com.

About Sonic Automotive

Sonic Automotive, Inc., a Fortune 500 company based in Charlotte, North Carolina, is on a quest to become the most valuable diversified automotive retail and service brand in America. Our Company culture thrives on creating, innovating, and providing industry-leading guest experiences, driven by strategic investments in technology, teammates, and ideas that ultimately fulfill ownership dreams, enrich lives, and deliver happiness to our guests and teammates. As one of the largest automotive and powersports retailers in America, we are committed to delivering on this goal while pursuing expansive growth and taking progressive measures to be the leader in these categories. Our new platforms, programs, and people are set to drive the next generation of automotive and powersports experiences. More information about Sonic Automotive can be found at www.sonicautomotive.com and ir.sonicautomotive.com.

About EchoPark Automotive

EchoPark Automotive is one of the most comprehensive retailers of nearly new pre-owned vehicles in America today. Our unique business model offers a best-in-class shopping experience and utilizes one of the most innovative technology-enabled sales strategies in our industry. Our approach provides a personalized and proven guest-centric buying process that consistently delivers award-winning guest experiences and superior value to car buyers nationwide, with savings of up to $3,000 versus the competition. Consumers have responded by putting EchoPark among the top national pre-owned vehicle retailers in products, sales, and service, while receiving the 2023 Consumer Satisfaction Award from DealerRater. EchoPark’s mission is in the name: Every Car, Happy Owner. This drives the experience for guests and differentiates EchoPark from the competition. More information about EchoPark Automotive can be found at www.echopark.com.

Forward-Looking Statements

Included herein are forward-looking statements, within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements address our future objectives, plans and goals, as well as our intent, beliefs and current expectations regarding future operating performance, results and events, and can generally be identified by words such as “may,” “will,” “should,” “could,” “believe,” “expect,” “estimate,” “anticipate,” “intend,” “plan,” “foresee” and other similar words or phrases. You should not place undue reliance on these statements, and you are cautioned that these forward-looking statements are not guarantees of future performance. There are many factors that affect management’s views about future events and trends of the Company’s business. These factors involve risks and uncertainties that could cause actual results or trends to differ materially from management’s views, including, without limitation, the effects of tariffs on vehicle and parts pricing and supply, the effects of tariffs on consumer demand, economic conditions in the markets in which we operate, supply chain disruptions and manufacturing delays, labor shortages, the impacts of inflation and changes in interest rates, new and used vehicle industry sales volume, future levels of consumer demand for new and used vehicles, anticipated future growth in each of our operating segments, the success of our operational strategies and investment in new technologies, the rate and timing of overall economic expansion or contraction, the integration of acquisitions, cybersecurity incidents and other disruptions to our information systems, and the risk factors described in the Company’s Annual Report on Form 10-K for the year ended December 31, 2025 and other reports and information filed with the United States Securities and Exchange Commission (the “SEC”). The Company does not undertake any obligation to update forward-looking information, except as required under federal securities laws and the rules and regulations of the SEC. Due to rounding, numbers presented throughout this and other documents may not add up precisely to the totals provided and percentages may not precisely reflect the absolute figures.

Non-GAAP Financial Measures

This press release and the attached financial tables contain certain non-GAAP financial measures as defined under SEC rules, such as adjusted net income, adjusted earnings per diluted share, adjusted SG&A expenses, adjusted SG&A expenses as a percentage of gross profit, adjusted segment income (loss), and adjusted EBITDA (loss). As required by SEC rules, the Company has provided reconciliations of these non-GAAP financial measures to the most directly comparable GAAP financial measures in the schedules included in this press release. The Company believes that these non-GAAP financial measures improve the transparency of the Company’s disclosures and provide a meaningful presentation of the Company’s results.

Sonic Automotive, Inc.

Results of Operations (Unaudited)

  Results of Operations - Consolidated

  Three Months Ended March 31,

Better / (Worse)

2026

2025

% Change

(In millions, except per share
amounts)

Revenues:

Retail new vehicles

$

1,607.4

$

1,656.3

(3

)%

Fleet new vehicles

20.7

22.1

NM

Total new vehicles

1,628.1

1,678.4

(3

)%

Used vehicles

1,269.6

1,225.0

4

%

Wholesale vehicles

71.8

82.7

NM

Total vehicles

2,969.5

2,986.1

(1

)%

Parts, service and collision repair

516.6

474.4

9

%

Finance, insurance and other, net

202.4

190.8

6

%

Total revenues

3,688.5

3,651.3

1

%

Cost of sales:

Retail new vehicles

(1,522.9

)

(1,566.9

)

3

%

Fleet new vehicles

(20.3

)

(21.5

)

6

%

Total new vehicles

(1,543.2

)

(1,588.4

)

3

%

Used vehicles

(1,221.1

)

(1,178.6

)

(4

)%

Wholesale vehicles

(73.4

)

(84.1

)

13

%

Total vehicles

(2,837.7

)

(2,851.1

)

—

%

Parts, service and collision repair

(252.0

)

(233.8

)

(8

)%

Total cost of sales

(3,089.7

)

(3,084.9

)

—

%

Gross profit

598.8

566.4

6

%

Selling, general and administrative expenses

(427.0

)

(380.3

)

(12

)%

Impairment charges

(0.4

)

(1.4

)

NM

Depreciation and amortization

(38.7

)

(39.7

)

3

%

Operating income (loss)

132.7

145.0

(8

)%

Other income (expense):

Interest expense, floor plan

(19.4

)

(20.0

)

3

%

Interest expense, other, net

(28.3

)

(27.6

)

(3

)%

Other income (expense), net

0.1

—

NM

Total other income (expense)

(47.6

)

(47.6

)

—

%

Income before taxes

85.1

97.4

(13

)%

Provision for income taxes - benefit (expense)

(24.3

)

(26.8

)

9

%

Net income

$

60.8

$

70.6

(14

)%

Basic earnings (loss) per common share

$

1.81

$

2.09

(13

)%

Basic weighted-average common shares outstanding

33.6

33.9

1

%

Diluted earnings (loss) per common share

$

1.79

$

2.04

(12

)%

Diluted weighted-average common shares outstanding

34.0

34.6

2

%

Dividends declared per common share

$

0.38

$

0.30

27

%

  NM = Not Meaningful

Franchised Dealerships Segment - Reported

  Three Months Ended March 31,

Better / (Worse)

2026

2025

% Change

(In millions, except unit and per unit data)

Revenues:

Retail new vehicles

$

1,585.2

$

1,636.9

(3

)%

Fleet new vehicles

20.7

22.1

NM

Total new vehicles

1,605.9

1,659.0

(3

)%

Used vehicles

768.7

745.6

3

%

Wholesale vehicles

43.9

54.6

NM

Total vehicles

2,418.5

2,459.2

(2

)%

Parts, service and collision repair

509.3

467.4

9

%

Finance, insurance and other, net

139.3

130.6

7

%

Total revenues

3,067.1

3,057.2

—

%

Gross Profit:

Retail new vehicles

81.2

86.7

(6

)%

Fleet new vehicles

0.4

0.6

(33

)%

Total new vehicles

81.6

87.3

(7

)%

Used vehicles

40.5

39.9

2

%

Wholesale vehicles

(1.8

)

(1.0

)

(80

)%

Total vehicles

120.3

126.2

(5

)%

Parts, service and collision repair

261.1

237.2

10

%

Finance, insurance and other, net

139.3

130.6

7

%

Total gross profit

520.7

494.0

5

%

Selling, general and administrative expenses

(374.4

)

(325.9

)

(15

)%

Impairment charges

(0.4

)

—

NM

Depreciation and amortization

(31.7

)

(33.4

)

5

%

Operating income

114.2

134.7

(15

)%

Other income (expense):

Interest expense, floor plan

(16.0

)

(16.3

)

2

%

Interest expense, other, net

(27.3

)

(26.6

)

(3

)%

Other income (expense), net

0.1

0.1

NM

Total other income (expense)

(43.2

)

(42.8

)

(1

)%

Income before taxes

71.0

91.9

(23

)%

Add: Impairment charges

0.4

—

NM

Segment income

$

71.4

$

91.9

(22

)%

Unit Sales Volume:

Retail new vehicles

25,830

28,082

(8

)%

Fleet new vehicles

337

383

(12

)%

Total new vehicles

26,167

28,465

(8

)%

Used vehicles

26,335

25,441

4

%

Wholesale vehicles

4,713

6,195

(24

)%

Retail new & used vehicles

52,165

53,523

(3

)%

Used-to-New Ratio

1.02

0.91

12

%

Gross Profit Per Unit:

Retail new vehicles

$

3,144

$

3,089

2

%

Fleet new vehicles

$

1,264

$

1,444

(12

)%

New vehicles

$

3,120

$

3,067

2

%

Used vehicles

$

1,539

$

1,568

(2

)%

Finance, insurance and other, net

$

2,670

$

2,439

9

%

  NM = Not Meaningful

Note: Reported Franchised Dealerships Segment results include (i) same store results from the “Franchised Dealerships Segment - Same Store” table below and (ii) the effects of acquisitions, open points, dispositions and holding company impacts for the periods reported. All currently operating franchised dealership stores are included within the same store group as of the first full month following the first anniversary of the store’s opening or acquisition.

Franchised Dealerships Segment - Same Store

  Three Months Ended March 31,

Better / (Worse)

2026

2025

% Change

(In millions, except unit and per unit data)

Revenues:

Retail new vehicles

$

1,485.5

$

1,617.0

(8

)%

Fleet new vehicles

18.8

22.0

(15

)%

Total new vehicles

1,504.3

1,639.0

(8

)%

Used vehicles

746.2

732.5

2

%

Wholesale vehicles

41.4

53.6

(23

)%

Total vehicles

2,291.9

2,425.1

(5

)%

Parts, service and collision repair

483.5

462.2

5

%

Finance, insurance and other, net

130.6

128.3

2

%

Total revenues

2,906.0

3,015.6

(4

)%

Gross Profit:

Retail new vehicles

74.2

86.5

(14

)%

Fleet new vehicles

0.5

0.6

(17

)%

Total new vehicles

74.8

87.1

(14

)%

Used vehicles

39.3

39.5

(1

)%

Wholesale vehicles

(1.7

)

(0.7

)

(143

)%

Total vehicles

112.4

125.9

(11

)%

Parts, service and collision repair

247.1

234.5

5

%

Finance, insurance and other, net

130.6

128.3

2

%

Total gross profit

$

490.1

$

488.7

—

%

Unit Sales Volume:

Retail new vehicles

24,725

27,598

(10

)%

Fleet new vehicles

317

383

(17

)%

Total new vehicles

25,042

27,981

(11

)%

Used vehicles

25,636

24,832

3

%

Wholesale vehicles

4,519

5,968

(24

)%

Retail new & used vehicles

50,361

52,430

(4

)%

Used-to-New Ratio

1.04

0.90

16

%

Gross Profit Per Unit:

Retail new vehicles

$

3,002

$

3,135

(4

)%

Fleet new vehicles

$

1,717

$

1,444

19

%

New vehicles

$

2,986

$

3,112

(4

)%

Used vehicles

$

1,533

$

1,592

(4

)%

Finance, insurance and other, net

$

2,594

$

2,448

6

%

  Note: All currently operating franchised dealership stores are included within the same store group as of the first full month following the first anniversary of the store’s opening or acquisition.

EchoPark Segment - Reported

  Three Months Ended March 31,

Better / (Worse)

2026

2025

% Change

(In millions, except unit and per unit data)

Revenues:

Used vehicles

$

491.8

$

473.7

4

%

Wholesale vehicles

27.3

27.3

NM

Total vehicles

519.1

501.0

4

%

Finance, insurance and other, net

61.4

58.7

5

%

Total revenues

580.5

559.7

4

%

Gross Profit:

Used vehicles

6.3

5.4

17

%

Wholesale vehicles

0.2

(0.2

)

200

%

Total vehicles

6.5

5.2

25

%

Finance, insurance and other, net

61.4

58.7

5

%

Total gross profit

67.9

63.9

6

%

Selling, general and administrative expenses

(42.7

)

(44.8

)

5

%

Impairment charges

—

(0.2

)

NM

Depreciation and amortization

(5.7

)

(5.2

)

(10

)%

Operating income

19.5

13.7

42

%

Other income (expense):

Interest expense, floor plan

(3.0

)

(3.1

)

3

%

Interest expense, other, net

(0.3

)

(0.4

)

25

%

Other income (expense), net

—

(0.1

)

NM

Total other income (expense)

(3.3

)

(3.6

)

8

%

Income before taxes

16.2

10.1

60

%

Add: Impairment charges

—

0.2

NM

Segment income

$

16.2

$

10.3

57

%

Unit Sales Volume:

Used vehicles

19,326

18,798

3

%

Wholesale vehicles

3,127

3,150

(1

)%

Gross Profit Per Unit:

Total used vehicle and F&I

$

3,502

$

3,411

3

%

  NM = Not Meaningful

EchoPark Segment - Same Market

  Three Months Ended March 31,

Better / (Worse)

2026

2025

% Change

(In millions, except unit and per unit data)

Revenues:

Used vehicles

$

491.8

$

473.7

4

%

Wholesale vehicles

27.4

27.3

—

%

Total vehicles

519.2

501.0

4

%

Finance, insurance and other, net

61.6

59.1

4

%

Total revenues

580.8

560.1

4

%

Gross Profit:

Used vehicles

6.4

5.4

19

%

Wholesale vehicles

0.2

(0.2

)

200

%

Total vehicles

6.6

5.2

27

%

Finance, insurance and other, net

61.6

59.1

4

%

Total gross profit

$

68.2

$

64.3

6

%

Unit Sales Volume:

Used vehicles

19,326

18,798

3

%

Wholesale vehicles

3,127

3,150

(1

)%

Gross Profit Per Unit:

Total used vehicle and F&I

$

3,518

$

3,432

3

%

  Note: All currently operating EchoPark stores in a local geographic market are included within the same market group as of the first full month following the first anniversary of the market's opening.

Powersports Segment - Reported

  Three Months Ended March 31,

Better / (Worse)

2026

2025

% Change

(In millions, except unit and per unit data)

Revenues:

Retail new vehicles

$

22.3

$

19.4

15

%

Used vehicles

9.2

5.7

61

%

Wholesale vehicles

0.2

0.8

NM

Total vehicles

31.7

25.9

22

%

Parts, service and collision repair

7.4

7.0

6

%

Finance, insurance and other, net

1.8

1.5

20

%

Total revenues

40.9

34.4

19

%

Gross Profit:

Retail new vehicles

3.2

2.7

19

%

Used vehicles

1.6

1.1

45

%

Wholesale vehicles

—

(0.2

)

100

%

Total vehicles

4.8

3.6

33

%

Parts, service and collision repair

3.5

3.4

3

%

Finance, insurance and other, net

1.8

1.5

20

%

Total gross profit

10.1

8.5

19

%

Selling, general and administrative expenses

(9.9

)

(9.6

)

(3

)%

Impairment charges

—

(1.1

)

NM

Depreciation and amortization

(1.2

)

(1.2

)

—

%

Operating income

(1.0

)

(3.4

)

71

%

Other income (expense):

Interest expense, floor plan

(0.4

)

(0.5

)

20

%

Interest expense, other, net

(0.7

)

(0.7

)

—

%

Other income (expense), net

0.1

—

NM

Total other income (expense)

(1.0

)

(1.2

)

17

%

Loss before taxes

(2.0

)

(4.6

)

57

%

Add: Impairment charges

—

1.1

NM

Segment loss

$

(2.0

)

$

(3.5

)

43

%

Unit Sales Volume:

Retail new vehicles

1,124

993

13

%

Used vehicles

832

578

44

%

Wholesale vehicles

49

60

(18

)%

Gross Profit Per Unit:

Retail new vehicles

$

2,891

$

2,681

8

%

Used vehicles

$

1,938

$

1,823

6

%

Finance, insurance and other, net

$

907

$

943

(4

)%

  NM = Not Meaningful

Powersports Segment - Same Store

  Three Months Ended March 31,

Better / (Worse)

2026

2025

% Change

(In millions, except unit and per unit data)

Revenues:

Retail new vehicles

$

22.3

$

18.8

19

%

Used vehicles

9.2

5.2

77

%

Wholesale vehicles

0.2

0.8

(75

)%

Total vehicles

31.7

24.8

28

%

Parts, service and collision repair

7.4

6.6

12

%

Finance, insurance and other, net

1.8

1.4

29

%

Total revenues

40.9

32.8

25

%

Gross Profit:

Retail new vehicles

3.2

2.6

23

%

Used vehicles

1.6

1.0

60

%

Wholesale vehicles

—

—

—

%

Total vehicles

4.8

3.6

33

%

Parts, service and collision repair

3.5

3.2

9

%

Finance, insurance and other, net

1.8

1.4

29

%

Total gross profit

$

10.1

$

8.2

23

%

Unit Sales Volume:

Retail new vehicles

1,124

969

16

%

Used vehicles

832

533

56

%

Wholesale vehicles

49

60

(18

)%

Retail new & used vehicles

1,956

1,502

30

%

Used-to-New Ratio

0.74

0.55

35

%

Gross Profit Per Unit:

Retail new vehicles

$

2,891

$

2,709

7

%

Used vehicles

$

1,938

$

1,797

8

%

Finance, insurance and other, net

$

907

$

952

(5

)%

  Note: All currently operating powersports stores are included within the same store group as of the first full month following the first anniversary of the store’s opening or acquisition.

Non-GAAP Reconciliation - Consolidated - SG&A Expenses

  Three Months Ended March 31,

Better / (Worse)

2026

2025

Change

% Change

(In millions)

Reported:

Compensation

$

274.3

$

258.5

$

(15.8

)

(6

)%

Advertising

27.3

23.8

(3.5

)

(15

)%

Rent

9.7

10.2

0.5

5

%

Other

115.7

87.8

(27.9

)

(32

)%

Total SG&A expenses

$

427.0

$

380.3

$

(46.7

)

(12

)%

Adjustments:

Acquisition and disposition-related gain (loss)

$

5.1

$

(1.0

)

Cyber insurance proceeds

—

30.0

Storm damage charges

—

(0.9

)

Gain (loss) on exit of leased dealership

3.6

—

Total SG&A adjustments

$

8.7

$

28.1

Adjusted:

Total adjusted SG&A expenses

$

435.7

$

408.4

$

(27.3

)

(7

)%

Reported:

SG&A expenses as a % of gross profit:

Compensation

45.8

%

45.6

%

(20

)

bps

Advertising

4.6

%

4.2

%

(40

)

bps

Rent

1.6

%

1.8

%

20

bps

Other

19.3

%

15.5

%

(380

)

bps

Total SG&A expenses as a % of gross profit

71.3

%

67.1

%

(420

)

bps

Adjustments:

Acquisition and disposition-related gain (loss)

0.9

%

(0.2

)%

Cyber insurance proceeds

—

%

5.3

%

Storm damage charges

—

%

(0.2

)%

Gain (loss) on lease terminations

0.6

%

—

%

Total effect of adjustments

1.5

%

5.0

%

Adjusted:

Total adjusted SG&A expenses as a % of gross profit

72.8

%

72.1

%

(70

)

bps

Reported:

Total gross profit

$

598.8

$

566.4

$

32.4

6

%

Non-GAAP Reconciliation - Franchised Dealerships Segment - SG&A Expenses

  Three Months Ended March 31,

Better / (Worse)

2026

2025

Change

% Change

(In millions)

Reported:

Compensation

$

240.1

$

226.4

$

(13.7

)

(6

)%

Advertising

18.7

15.8

(2.9

)

(18

)%

Rent

12.4

9.7

(2.7

)

(28

)%

Other

103.2

74.0

(29.2

)

(39

)%

Total SG&A expenses

$

374.4

$

325.9

$

(48.5

)

(15

)%

Adjustments:

Acquisition and disposition-related gain (loss)

$

5.1

$

(0.3

)

Cyber insurance proceeds

—

30.0

Storm damage charges

—

(0.9

)

Total SG&A adjustments

$

5.1

$

28.8

Adjusted:

Total adjusted SG&A expenses

$

379.5

$

354.7

$

(24.8

)

(7

)%

Reported:

SG&A expenses as a % of gross profit:

Compensation

46.1

%

45.8

%

(30

)

bps

Advertising

3.6

%

3.2

%

(40

)

bps

Rent

2.4

%

2.0

%

(40

)

bps

Other

19.8

%

15.0

%

(480

)

bps

Total SG&A expenses as a % of gross profit

71.9

%

66.0

%

(590

)

bps

Adjustments:

Acquisition and disposition-related gain (loss)

1.0

%

(0.1

)%

Cyber insurance proceeds

—

%

6.1

%

Storm damage charges

—

%

(0.2

)%

Total effect of adjustments

1.0

%

5.8

%

Adjusted:

Total adjusted SG&A expenses as a % of gross profit

72.9

%

71.8

%

(110

)

bps

Reported:

Total gross profit

$

520.7

$

494.0

$

26.7

5

%

Non-GAAP Reconciliation - EchoPark Segment - SG&A Expenses

Three Months Ended March 31,

Better / (Worse)

2026

2025

Change

% Change

(In millions)

Reported:

Compensation

$

26.9

$

25.9

$

(1.0

)

(4

)%

Advertising

8.3

7.7

(0.6

)

(8

)%

Rent

(2.7

)

0.7

3.4

486

%

Other

10.2

10.5

0.3

3

%

Total SG&A expenses

$

42.7

$

44.8

$

2.1

5

%

Adjustments:

Acquisition and disposition-related gain (loss)

$

—

$

0.2

Gain (loss) on exit of leased dealerships

3.6

—

Total SG&A adjustments

$

3.6

$

0.2

Adjusted:

Total adjusted SG&A expenses

$

46.3

$

45.0

$

(1.3

)

(3

)%

Reported:

SG&A expenses as a % of gross profit:

Compensation

39.6

%

40.5

%

90

bps

Advertising

12.2

%

12.1

%

(10

)

bps

Rent

(4.0

)%

1.1

%

510

bps

Other

15.1

%

16.4

%

130

bps

Total SG&A expenses as a % of gross profit

62.9

%

70.1

%

720

bps

Adjustments:

Acquisition and disposition-related gain (loss)

—

%

0.3

%

Gain (loss) on exit of leased dealerships

5.3

%

—

%

Total effect of adjustments

5.3

%

0.3

%

Adjusted:

Total adjusted SG&A expenses as a % of gross profit

68.2

%

70.4

%

220

bps

Reported:

Total gross profit

$

67.9

$

63.9

$

4.0

6

%

Non-GAAP Reconciliation - Powersports Segment - SG&A Expenses

  Three Months Ended March 31,

Better / (Worse)

2026

2025

Change

% Change

(In millions)

Reported:

Compensation

$

7.3

$

6.2

$

(1.1

)

(18

)%

Advertising

0.3

0.2

(0.1

)

(50

)%

Rent

—

(0.2

)

(0.2

)

(100

)%

Other

2.3

3.4

1.1

32

%

Total SG&A expenses

$

9.9

$

9.6

$

(0.3

)

(3

)%

Adjustments:

Acquisition and disposition-related gain (loss)

$

—

$

(0.9

)

Total SG&A adjustments

$

—

$

(0.9

)

Adjusted:

Total adjusted SG&A expenses

$

9.9

$

8.7

Reported:

SG&A expenses as a % of gross profit:

Compensation

71.9

%

72.6

%

70

bps

Advertising

3.3

%

2.9

%

(40

)

bps

Rent

—

%

(2.0

)%

(200

)

bps

Other

22.5

%

39.0

%

1,650

bps

Total SG&A expenses as a % of gross profit

97.7

%

112.5

%

1,480

bps

Adjustments:

Acquisition and disposition-related gain (loss)

—

%

(10.5

)%

Total effect of adjustments

—

%

(10.5

)%

Adjusted:

Total adjusted SG&A expenses as a % of gross profit

97.7

%

102.0

%

430

bps

Reported:

Total gross profit

$

10.1

$

8.5

$

1.6

19

%

Non-GAAP Reconciliation - Franchised Dealerships Segment - Income (Loss) Before Taxes and Segment Income (Loss)

  Three Months Ended March 31,

2026

2025

% Change

(In millions)

Reported:

Income before taxes

$

71.0

$

91.9

(23

)%

Add: Impairment charges

0.4

—

Segment income

$

71.4

$

91.9

(22

)%

Adjustments:

Acquisition and disposition-related (gain) loss

$

(5.1

)

$

0.3

Cyber insurance proceeds

—

(30.0

)

Storm damage charges

—

0.9

Total pre-tax adjustments

$

(5.1

)

$

(28.8

)

Adjusted:

Segment income

$

66.3

$

63.1

5

%

Non-GAAP Reconciliation - EchoPark Segment - Income (Loss) Before Taxes and Segment Income (Loss)

  Three Months Ended March 31,

2026

2025

% Change

(In millions)

Reported:

Income before taxes

$

16.2

$

10.1

60

%

Add: Impairment charges

—

0.2

Segment income

$

16.2

$

10.3

57

%

Adjustments:

Acquisition and disposition-related (gain) loss

$

—

$

(0.2

)

Loss (gain) on exit of leased dealerships

(3.6

)

—

Total pre-tax adjustments

$

(3.6

)

$

(0.2

)

Adjusted:

Segment income

$

12.6

$

10.1

25

%

Non-GAAP Reconciliation - Powersports Segment - Income (Loss) Before Taxes and Segment Income (Loss)

  Three Months Ended March 31,

2026

2025

% Change

(In millions)

Reported:

Loss before taxes

$

(2.0

)

$

(4.6

)

57

%

Add: Impairment charges

—

1.1

Segment loss

$

(2.0

)

$

(3.5

)

43

%

Adjustments:

Acquisition and disposition-related (gain) loss

$

—

$

0.9

Adjusted:

Adjusted segment loss

$

(2.0

)

$

(2.6

)

23

%

Non-GAAP Reconciliation - Consolidated - Net Income (Loss) and Diluted Earnings (Loss) Per Share

  Three Months Ended March 31, 2026

Three Months Ended March 31, 2025

Weighted-
Average
Shares

Net Income
(Loss)

Per
Share
Amount

Weighted-
Average
Shares

Net Income
(Loss)

Per
Share
Amount

(In millions, except per share amounts)

Reported net income, diluted shares, and diluted earnings per share

34.0

$

60.8

$

1.79

34.6

$

70.6

$

2.04

Adjustments:

Acquisition and disposition-related (gain) loss

$

(5.1

)

$

1.0

Cyber insurance proceeds

—

(30.0

)

Storm damage charges

—

0.9

Impairment charges

0.4

1.4

Loss (gain) on exit of leased dealerships

(3.6

)

—

Total pre-tax adjustments

$

(8.3

)

$

(26.7

)

Tax effect of above items

2.4

7.4

Adjusted net income, diluted shares, and diluted earnings per share

34.0

$

54.9

$

1.62

34.6

$

51.3

$

1.48

Non-GAAP Reconciliation - Adjusted EBITDA

  Three Months Ended March 31, 2026

Three Months Ended March 31, 2025

Franchised
Dealerships
Segment

EchoPark
Segment

Powersports
Segment

Total

Franchised
Dealerships
Segment

EchoPark
Segment

Powersports
Segment

Total

(In millions)

Net income

$

60.8

$

70.6

Provision for income taxes

24.3

26.8

Income (loss) before taxes

$

71.0

$

16.2

$

(2.0

)

$

85.1

$

91.9

$

10.1

$

(4.6

)

$

97.4

Non-floor plan interest (1)

25.6

0.3

0.7

26.6

24.9

0.5

0.7

26.1

Depreciation & amortization (2)

33.3

5.7

1.2

40.2

35.1

5.2

1.2

41.4

Stock-based compensation expense

5.2

—

—

5.2

5.8

—

—

5.8

Loss (gain) on exit of leased dealerships

—

(3.6

)

—

(3.6

)

—

—

—

—

Impairment charges

0.4

—

—

0.4

—

0.2

1.1

1.4

Cyber insurance proceeds

—

—

—

—

(30.0

)

—

—

(30.0

)

Acquisition and disposition related (gain) loss

(5.1

)

—

—

(5.1

)

0.3

(0.2

)

0.9

1.0

Storm damage charges

—

—

—

—

0.9

—

—

0.9

Adjusted EBITDA (loss)

$

130.4

$

18.6

$

(0.1

)

$

148.8

$

128.9

$

15.8

$

(0.7

)

$

144.0

Note: Due to rounding, segment level financial data may not sum to consolidated results.

More News From Sonic Automotive, Inc.

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For the quarter ended March 2026, Sonic Automotive (SAH - Free Report) reported revenue of $3.69 billion, up 1% over the same period last year. EPS came in at $1.62, compared to $1.48 in the year-ago quarter.

The reported revenue represents a surprise of -1.41% over the Zacks Consensus Estimate of $3.74 billion. With the consensus EPS estimate being $1.46, the EPS surprise was +11.34%.

While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance.

As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately.

Here is how Sonic Automotive performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:

Franchised Dealerships Segment - Same Store - Unit Sales Volume - Used vehicles: 25,636 versus 25,394 estimated by two analysts on average.Franchised Dealerships Segment - Same Store - Unit Sales Volume - Total new vehicles: 25,042 versus the two-analyst average estimate of 26,943.Franchised Dealerships Segment - Gross Profit Per Unit - New vehicles: $3,120.00 compared to the $2,975.72 average estimate based on two analysts.Franchised Dealerships Segment - Gross Profit Per Unit - Used vehicles: $1,539.00 versus $1,418.01 estimated by two analysts on average.Revenues- Franchised Dealerships: $3.07 billion compared to the $3.12 billion average estimate based on two analysts. The reported number represents a change of +0.3% year over year.Revenues- Franchised Dealerships Segment- Same Store- Used vehicles: $746.2 million versus the two-analyst average estimate of $750.42 million. The reported number represents a year-over-year change of +2%.Revenues- Franchised Dealerships Segment- Total new vehicles: $1.61 billion versus $1.68 billion estimated by two analysts on average. Compared to the year-ago quarter, this number represents a -3.2% change.Revenues- Franchised Dealerships Segment- Used vehicles: $768.7 million compared to the $779.94 million average estimate based on two analysts. The reported number represents a change of +3.1% year over year.Revenues- Franchised Dealerships Segment- Parts, service and collision repair: $509.3 million compared to the $500.2 million average estimate based on two analysts. The reported number represents a change of +9% year over year.Revenues- Franchised Dealerships Segment- Finance, insurance and other, net: $139.3 million compared to the $141.73 million average estimate based on two analysts. The reported number represents a change of +6.7% year over year.Revenues- EchoPark Segment- Used vehicles: $491.8 million versus the two-analyst average estimate of $464.06 million. The reported number represents a year-over-year change of +3.8%.Revenues- EchoPark Segment- Finance, insurance and other, net: $61.4 million versus the two-analyst average estimate of $59.47 million. The reported number represents a year-over-year change of +4.6%.View all Key Company Metrics for Sonic Automotive here>>>

Shares of Sonic Automotive have returned +12.4% over the past month versus the Zacks S&P 500 composite's +12.2% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term.

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Published in earnings earnings-estimates-revisions earnings-surprise

Key Takeaways SAH Q1 EPS rose 9.5% to $1.62, beating estimates by 11% despite a revenue miss.SAH EchoPark posted record EBITDA and stronger segment income with improved efficiency.SAH boosted buybacks and raised dividends as liquidity held near $770M. Sonic Automotive, Inc. (SAH - Free Report) posted first-quarter 2026 adjusted earnings per share of $1.62, which increased 9.5% year over year and beat the Zacks Consensus Estimate of $1.46 by 11.34%. Total revenues rose 1.02% year over year to $3.69 billion but missed the Zacks Consensus Estimate of $3.74 billion by 1.41%.

Results reflected solid profitability even though demand was uneven across parts of the vehicle market. Strong performance in higher-margin areas helped balance the weaker spots. In particular, same-store finance and insurance profit per vehicle at franchised dealerships rose 6% year over year to $2,594.

SAH Results Show Mixed Revenue Trends by Line ItemOn a consolidated basis, SAH’s revenue mix was uneven across categories. New-vehicle revenues totaled $1.63 billion, down 3% year over year, while used-vehicle revenues increased 4% to $1.27 billion.

The higher-growth areas were Service and F&I businesses. Revenues from parts, service and collision repair increased 9% to $516.6 million, while finance, insurance and other income rose 6% to $202.4 million. These areas helped support overall revenue growth even as new-vehicle sales remained weak.

Sonic's Franchised Stores Lean on Service and Unit MixSonic’s Franchised Dealerships segment produced revenues of $3.07 billion, essentially flat year over year. Within the segment, parts, service and collision repair revenues climbed 9% to $509.3 million, while finance, insurance and other revenues improved 7% to $139.3 million.

Same-store revenues declined 4% year over year to $2.91 billion, with same-store retail new vehicle unit volume down 10% to 24,725 and same-store retail used vehicle unit volume up 3% to 25,636. Same-store fixed operations gross profit increased 5% to $247.1 million, and the same-store fixed operations gross profit margin improved 40 basis points to 51.1%, supporting profitability even as new-vehicle trends softened.

SAH's EchoPark Delivers Record Profitability MetricsSAH’s EchoPark segment remained a bright spot. Segment revenues increased 4% year over year to $580.5 million, and total gross profit grew 6% to $67.9 million, supported by higher finance and insurance contribution alongside modest vehicle gross profit improvement.

Profitability improved significantly compared to the previous year. EchoPark reported segment income of $16.2 million versus $10.3 million in the prior-year quarter, while adjusted segment income rose to $12.6 million from $10.1 million.

Adjusted EBITDA improved to $18.6 million compared with $15.8 million a year ago. SG&A expenses as a percentage of gross profit improved to 62.9% from 70.1%.

Sonic Powersports Expands, Seasonal Loss ImprovesSonic’s Powersports segment continued to scale from a smaller base, with first-quarter revenues increasing 19% year over year to $40.9 million. Gross profit rose 19% to $10.1 million, reflecting growth across vehicle sales and service activity.

Loss metrics improved noticeably compared to the same period last year, in line with seasonal patterns, as the first quarter is typically weaker before demand picks up later in the year.

The segment posted a loss of $2 million, better than the $3.5 million loss a year ago, while adjusted EBITDA loss narrowed to $0.1 million from $0.7 million. Sonic also pointed to an April 2026 acquisition of five Harley-Davidson dealerships that is expected to add roughly $100 million in annualized revenues to the Powersports segment.

SAH Steps Up Buybacks and Raises Quarterly DividendIn the first quarter, the company repurchased about 2.1 million shares for approximately $135.7 million.

Liquidity remained strong, supporting ongoing capital deployment activities. As of March 31, 2026, SAH had about $381 million in cash and floor plan deposits, with total liquidity of roughly $770 million. In April 2026, the board approved an additional $500 million in share repurchase authorization, lifting total remaining authorization to $528 million.

Sonic also approved an 8% dividend increase to $0.41 per share payable July 15, 2026, to shareholders of record on June 15, 2026.

Peer ReleasesLithia Motors (LAD - Free Report) posted first-quarter 2026 adjusted earnings of $7.34 per share, down 4% from $7.66 a year ago. However, the bottom line beat the Zacks Consensus Estimate of $7.06 by 4%. Quarterly revenues rose 1% year over year to $9.27 billion but came in below the Zacks Consensus Estimate of $9.36 billion by 0.9%.

As of March 31, 2026, Lithia’s cash, restricted cash and cash equivalents totaled $421.3 million, up from $341.8 million at year-end 2025. The board approved a quarterly dividend of 57 cents per share, expected to be paid on May 22, 2026, to shareholders of record on May 8, 2026. 

Penske Automotive Group, Inc. (PAG - Free Report) reported first-quarter 2026 adjusted earnings of $3.05 per share, which declined 15.0% year over year but topped the Zacks Consensus Estimate of $2.91 by 4.8%. Total revenues of $7.86 billion dipped 1.1% from the year-ago quarter and missed the consensus mark of $7.95 billion by 1.1%.

The company paid $92.6 million in dividends and repurchased 170,393 shares for $26.4 million. Liquidity was approximately $1.3 billion, including $83.7 million in cash and $1.2 billion of availability under credit agreements and revolving mortgage facilities. Balance sheet leverage increased, with long-term debt rising to $2.21 billion as of March 31, 2026.

On May 13, 2026, Sonic Automotive Inc (SAH) shares fell 3.1% to a current price of $76.12. The stock has experienced a 52-week range between $54.11 and $89.62.

From a technical perspective, Sonic Automotive, Inc. (SAH - Free Report) is looking like an interesting pick, as it just reached a key level of support. SAH's 50-day simple moving average crossed above its 200-day simple moving average, which is known as a "golden cross" in the trading world.

Considered an important signifier for a bullish breakout, a golden cross is a technical chart pattern that's formed when a stock's short-term moving average breaks above a longer-term moving average; the most common crossover involves the 50-day and the 200-day, since bigger time periods tend to form stronger breakouts.

Golden crosses have three key stages that investors look out for. It starts with a downtrend in a stock's price that eventually bottoms out, followed by the stock's shorter moving average crossing over its longer moving average and triggering a trend reversal. The final stage is when a stock continues the upward climb to higher prices.

This kind of chart pattern is the opposite of a death cross, which is a technical event that suggests future bearish price movement.

SAH could be on the verge of a breakout after moving 15.5% higher over the last four weeks. Plus, the company is currently a #3 (Hold) on the Zacks Rank.

Looking at SAH's earnings expectations, investors will be even more convinced of the bullish uptrend. For the current quarter, there have been 4 changes higher compared to none lower over the past 60 days, and the Zacks Consensus Estimate has moved up as well.

Given this move in earnings estimates and the positive technical factor, investors may want to keep their eye on SAH for more gains in the near future.

, /PRNewswire/ -- Sonic Automotive, Inc. (NYSE: SAH), today announced it has been recognized as one of the Most Trustworthy Companies in America by Newsweek. This recognition is a powerful validation of Sonic's unwavering commitment to its purpose, its people, and the millions of guests it serves every year. 

Sonic Automotive Most Trustworthy Companies in America

EchoPark Automotive and Sonic Powersports logos The award acknowledges Sonic as one of only 700 companies selected from over 100,000 reviewed across 23 industries, based on surveys of 25,000 customers, employees, and investors.  Notably, Sonic Automotive is the only automotive retailer among the 24 companies named in the "Automotive and Components" category. Among the honored brands in the category is Harley-Davidson, a testament to Sonic Powersports owning and operating 13 Harley-Davidson locations, including Black Hills Harley-Davidson, the nation's largest Harley-Davidson dealership serving the Sturgis, South Dakota area.

For 60 years, Sonic Automotive has been guided by a singular purpose, to deliver an experience for our guests and our teammates that fulfills dreams, enriches lives, and delivers happiness. This purpose transcends every division of the company, from its new vehicle Franchised Dealerships to EchoPark Automotive and Sonic Powersports, serving guests whether they are pursuing life on two wheels, four wheels, or no wheels, or simply seeking exceptional service. Across every experience, one standard remains constant, namely exceptional, human-centered service that earns trust.

Founded in 1966 by Bruton Smith and grown into a Fortune 300 leader under the leadership of Chairman and Chief Executive Officer David B. Smith, Sonic Automotive today encompasses:

11,000+ teammates 173 automotive and powersports franchises, including EchoPark 145 locations across 90 cities in 21 states  That commitment has resulted in nearly:

7 million vehicles sold  40 million service experiences delivered  1 million+ 5-star reviews earned  Together, these milestones are proof of the trust earned one experience at a time.

"This recognition from Newsweek is incredibly meaningful because it reflects something we've believed for six decades—trust is earned through people and purpose, not through just words," shared David B. Smith, Chairman and Chief Executive Officer of Sonic Automotive. "My father, Bruton Smith, built this company on the idea that if you take care of people the right way, everything else follows. Today, that belief is alive in every one of our 11,000 teammates. That's why we've earned this trust, and why we will continue to earn it every day."

While Sonic Automotive may not always be the name on the front of every store, it is the foundation behind every experience delivered. Its reputation has not been built through brand awareness alone, but through millions of moments in which expectations were exceeded, and trust was earned.  As Sonic Automotive continues to evolve the future of automotive and powersports retail, one thing remains unchanged, the experience will always come first.

"We've never set out to be known as a holding company," said Jeff Dyke, President of Sonic Automotive. "We've set out to be known for how we make people feel. Whether a guest walks into one of our franchise automotive dealerships, EchoPark stores, or one of our Sonic Powersports locations, the expectation is the same: exceptional, transparent, and human. That consistency is what builds trust at scale, and it's how our teammates show up every single day."

Sonic Automotive will use this award as a proof point at each of its locations. You can discover more about Sonic Automotive at SonicAuto.com or ir.sonicautomotive.com.

About Sonic Automotive

Sonic Automotive, Inc., a Fortune 500 company based in Charlotte, North Carolina, is on a quest to become the most valuable diversified automotive retail and service brand in America. Our Company culture thrives on creating, innovating, and providing industry-leading guest experiences, driven by strategic investments in technology, teammates, and ideas that ultimately fulfill ownership dreams, enrich lives, and deliver happiness to our guests and teammates. As one of the largest automotive and powersports retailers in America, we are committed to delivering on this goal while pursuing expansive growth and taking innovative measures to be the leader in these categories. Our new platforms, programs, and people are set to drive the next generation of automotive and powersports experiences. More information about Sonic Automotive can be found at www.sonicautomotive.com and ir.sonicautomotive.com.

For Further Information, Please Contact:

Sonic Automotive Press Inquiries
Sonic Automotive Media Relations
[email protected]

SOURCE Sonic Automotive

Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.

Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.

Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.

Sonic Automotive (SAH - Free Report) is a stock many investors are watching right now. SAH is currently sporting a Zacks Rank #2 (Buy) and an A for Value.

Investors will also notice that SAH has a PEG ratio of 0.63. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. SAH's PEG compares to its industry's average PEG of 0.91. SAH's PEG has been as high as 0.74 and as low as 0.44, with a median of 0.53, all within the past year.

Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. SAH has a P/S ratio of 0.16. This compares to its industry's average P/S of 0.19.

Finally, our model also underscores that SAH has a P/CF ratio of 8.93. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. SAH's current P/CF looks attractive when compared to its industry's average P/CF of 9.97. SAH's P/CF has been as high as 10.08 and as low as 5.06, with a median of 6.80, all within the past year.

These figures are just a handful of the metrics value investors tend to look at, but they help show that Sonic Automotive is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, SAH feels like a great value stock at the moment.