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IDEXX Laboratories, Inc. (IDXX) Q1 2026 Earnings Call Transcript

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WESTBROOK, Maine--(BUSINESS WIRE)--IDEXX Laboratories, Inc. (NASDAQ: IDXX), a global leader in pet healthcare innovation, today announced that Mike Erickson, President and Chief Executive Officer, will participate in a fireside chat at the Stifel Jaws & Paws Conference on Wednesday, May 27, 2026 from 10:55 am – 11:25 am (ET).

A live audio webcast of the presentation will be available through a link on the IDEXX website, www.idexx.com/investors. An archived edition of the presentation will be available via the same link.

2026 Investor Day

IDEXX Laboratories, Inc. also announced today that it will host its 2026 Investor Day on Thursday, August 13, 2026, at its corporate headquarters in Westbrook, Maine from approximately 8:00 am to 12:00 pm (ET). A live webcast of the presentations will be available on www.idexx.com/investors. Advance registration for the in-person event is required; institutional investors and analysts interested in attending should contact [email protected]. Additional information on IDEXX’s Investor Day will be provided closer to the date of the event.

About IDEXX Laboratories, Inc.

IDEXX is a global leader in pet healthcare innovation. Our diagnostic and software products and services create clarity in the complex, constantly evolving world of veterinary medicine. We support longer, fuller lives for pets by delivering insights and solutions that help the veterinary community around the world make confident decisions—to advance medical care, improve efficiency, and build thriving practices. Our innovations also help ensure the safety of milk and water across the world and maintain the health and well-being of people and livestock. IDEXX Laboratories, Inc. is a member of the S&P 500™ Index. Headquartered in Maine, IDEXX employs approximately 11,000 people and offers solutions and products to customers in more than 175 countries and territories. For more information about IDEXX, visit www.idexx.com.

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WESTBROOK, Maine--(BUSINESS WIRE)--IDEXX Laboratories, Inc. (NASDAQ: IDXX), a global leader in pet healthcare innovation, today announced that SDMA, a renal biomarker, will be built into Catalyst™ CLIPs, making complete kidney function evaluation part of the most common point-of-care chemistry profiles. Available beginning in June to customers in the United States and Canada, the integration expands access to advanced kidney assessment at scale, enabling veterinarians to identify kidney function loss earlier and act sooner, without disrupting familiar workflows.

“SDMA is a clear example of how IDEXX innovates by developing clinically relevant diagnostics and then scaling their impact through platforms veterinarians already use every day.”

Share Supported by peer-reviewed studies using the IDEXX SDMA™ Test, SDMA is recognized by the International Renal Interest Society (IRIS) as a key biomarker for evaluating kidney function in pets.1 Since introducing the IDEXX SDMA™ Test in 2015, IDEXX has performed approximately 119 million SDMA patient tests globally primarily through its reference laboratories and increasingly on the Catalyst platform,2 underscoring the test’s clinical importance and broad adoption in kidney health evaluation. Results are seamlessly integrated into VetConnect™ PLUS, alongside other diagnostic data.

“SDMA is a clear example of how IDEXX innovates by developing clinically relevant diagnostics and then scaling their impact through platforms veterinarians already use every day,” said Mike Erickson, President and CEO of IDEXX. “Earlier insight enables earlier action, improving outcomes for pets, strengthening care experiences, and supporting durable, long-term growth for veterinary practices and IDEXX.”

Chronic kidney disease (CKD) is common in dogs and cats and frequently unrecognized, particularly early in the disease. Clinical evidence continues to show that including SDMA in routine diagnostic testing enables earlier detection of meaningful declines in kidney function that conventional markers alone may miss.3–6 In addition, a study, published in the Journal of the American Veterinary Medical Association, found that cats with early-stage CKD treated with a renal diet experienced slower disease progression and improved survival.7

“Kidney disease is common in both cats and dogs, so early evaluation is important,” said Dr. Christine Kirnos, VMD, The Cat Hospital of Media.* “Making SDMA easier to incorporate into routine in-clinic chemistry testing helps us assess kidney health more consistently and provides meaningful insight during the patient visit.”

For more information, please visit the Catalyst testing web page.

*Dr. Kirnos has received compensation for consulting services she has provided to IDEXX.

References

IRIS Guidelines. International Renal Interest Society. Accessed May 1, 2026. www.iris-kidney.com/iris-guidelines-1 Data on file at IDEXX Reference Laboratories, Inc. Westbrook, Maine USA: Catalyst SDMA and IDEXX SDMA test results collected July 13, 2015–March 31, 2026. Hall JA, Yerramilli M, Obare E, Yerramilli M, Almes K, Jewell DE. Serum concentrations of symmetric dimethylarginine and creatinine in dogs with naturally occurring chronic kidney disease. J Vet Intern Med. 2016;30(3):794–802. doi:10.1111/jvim.13942 Nabity MB, Lees GE, Boggess MM, et al. Symmetric dimethylarginine assay validation, stability, and evaluation as a marker for the early detection of chronic kidney disease in dogs. J Vet Intern Med. 2015;29(4):1036–1044. doi:10.1111/jvim.12835 Hall JA, Yerramilli M, Obare E, Yerramilli M, Jewell DE. Comparison of serum concentrations of symmetric dimethylarginine and creatinine as kidney function biomarkers in cats with chronic kidney disease. J Vet Intern Med. 2014;28(6):1676–1683. doi:10.1111/jvim.12445 Ettinger SJ, Feldman EC, eds. Textbook of Veterinary Internal Medicine. 6th ed. St. Louis, MO: Elsevier; 2005:1718–1719. Coyne M, Szlosek D, Webeck J, et al. Use of a veterinary therapeutic renal diet in cats with early chronic kidney disease is associated with slower disease progression and improved survival. JAVMA. 2026;264(5):590–598. doi:10.2460/javma.25.10.0665 About IDEXX

IDEXX is a global leader in pet healthcare innovation. Our diagnostic and software products and services create clarity in the complex, constantly evolving world of veterinary medicine. We support longer, fuller lives for pets by delivering insights and solutions that help the veterinary community around the world make confident decisions—to advance medical care, improve efficiency, and build thriving practices. Our innovations also help ensure the safety of milk and water across the world and maintain the health and well-being of people and livestock. IDEXX Laboratories, Inc. is a member of the S&P 500™ Index. Headquartered in Maine, IDEXX employs approximately 11,000 people and offers solutions and products to customers in more than 175 countries and territories. For more information about IDEXX, visit: www.idexx.com.

Note Regarding Forward-Looking Statements

This news release contains or may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements can be identified by the use of words such as “expects,” “may,” “anticipates,” “intends,” “would,” “will,” “plans,” “believes,” “estimates,” “should,” “project,” and similar words and expressions. These forward-looking statements are intended to provide our current expectations or forecasts of future events; are based on current estimates, projections, beliefs, and assumptions; and are not guarantees of future performance. Actual events or results may differ materially from those described in the forward-looking statements. These statements are subject to risks, uncertainties, assumptions, and other important factors. Readers are cautioned not to put undue reliance on such forward-looking statements because actual results may vary materially from those expressed or implied. The reports filed by IDEXX pursuant to United States securities laws contain discussions of some of these risks and uncertainties. IDEXX assumes no obligation to, and expressly disclaims any obligation to, update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise. Readers are advised to review IDEXX’s filings with the United States Securities and Exchange Commission (which are available from the SEC’s EDGAR database at sec.gov and via IDEXX’s website at idexx.com).

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IDEXX Laboratories, Inc. (IDXX) Presents at Stifel Jaws & Paws Conference 2026 Transcript

A month has gone by since the last earnings report for Idexx Laboratories (IDXX - Free Report) . Shares have lost about 3.2% in that time frame, underperforming the S&P 500.

Will the recent negative trend continue leading up to its next earnings release, or is Idexx due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its latest earnings report in order to get a better handle on the important catalysts.

IDEXX Q1 Earnings & Revenues Beat, Margins Rise, '26 View UpIDEXX Laboratories, Inc. (IDXX - Free Report) posted first-quarter 2026 earnings per share (EPS) of $3.47, up 17.2% year over year. The figure surpassed the Zacks Consensus Estimate by 1.5%.

Comparable constant-currency EPS of $3.30 improved 15% year over year.

IDEXX’s RevenuesQuarterly revenues increased 14% year over year (up 11% organically) to $1.14 billion. The reported figure topped the Zacks Consensus Estimate by 2.1%.

IDEXX’s Q1 Revenue Analysis by SegmentsIDEXX derives revenues from four operating segments: CAG, Water, Livestock, Poultry and Dairy (“LPD”), and Other.

CAG’s revenues rose 14.6% year over year on a reported basis and 11.6% on an organic basis to $1.05 billion.

CAG revenue growth was led by CAG Diagnostics recurring revenue growth of 14% as reported and 11% organic.  

Veterinary software, services and diagnostic imaging systems revenues grew 12% reportedly and 11% on an organic basis, led by cloud-native software growth and continued installed base expansion, including record diagnostic imaging system installations.

The Water segment’s revenues increased 10.9% year over year reportedly and 7.1% on an organic basis to $50.3 million.

For the first quarter, LPD revenues jumped 13.6% reportedly and 7.2% on an organic basis to $32.5 million.          

Revenues from the Other segment dropped 14% on a reported basis as well as organically to $4 million.

IDEXX’s Margin PerformanceGross profit rose 15.9% to $722.7 million. The gross margin expanded 92 basis points (bps) to 63.4% despite an 11.5% rise in the cost of revenues.

Sales and marketing expenses surged 12.2% to $175.3 million. G&A expenses rose 30.1% to $119.1 million. R&D expenses jumped 11.4% to $65.8 million. The operating profit in the reported quarter rose 14.5% year over year to $362.6 million. The operating margin in the quarter expanded 8 bps to 31.8%.

IDEXX’s Financial PositionIDEXX exited the first quarter of 2026 with cash and cash equivalents of $200.5 million compared with $180.1 million at the end of fourth-quarter 2025.

Cumulative net cash provided by operating activities was $266.3 million compared with $238 million in the prior-year period.

IDEXX’s Upgraded 2026 GuidanceIDEXX upgraded an initial outlook for 2026, forecasting revenues in the range of $4,675-$4,760 million (up from $4,632-$4,720 million). The Zacks Consensus Estimate is currently pegged at $4.67 billion.

Full-year EPS is projected to be in the band of $14.45-$14.90 (up from the previous guidance of $14.29-$14.80), implying growth of 11-14% (up from 9-13%). The Zacks Consensus Estimate is currently pegged at $14.54.

How Have Estimates Been Moving Since Then?It turns out, estimates review have trended downward during the past month.

VGM ScoresAt this time, Idexx has a nice Growth Score of B, however its Momentum Score is doing a bit better with an A. However, the stock has a score of D on the value side, putting it in the bottom 40% for value investors.

Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.

OutlookEstimates have been broadly trending downward for the stock, and the magnitude of these revisions looks promising. Interestingly, Idexx has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.

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How Style Scores Work with the Zacks Rank The Zacks Rank is a proprietary stock-rating model that harnesses the power of earnings estimate revisions, or changes to a company's earnings expectations, to help investors build a successful portfolio.

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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.

A stock with a #4 (Sell) or #5 (Strong Sell) rating, for instance, even one with Scores of A and B, will still have a declining earnings forecast, and a greater chance its share price will fall too.

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

Stock to Watch: Idexx Laboratories (IDXX - Free Report) Headquartered in Westbrook, ME, IDEXX Laboratories, Inc. is a developer, manufacturer and distributor of products and services primarily for the companion animal veterinary, livestock and poultry, water testing and dairy markets. The company also sells a series of portable electrolytes and blood gas analyzers for the human point-of-care medical diagnostics market.

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

Momentum investors should take note of this Medical stock. IDXX has a Momentum Style Score of A, and shares are up 5.4% over the past four weeks.

For fiscal 2026, six analysts revised their earnings estimate upwards in the last 60 days, and the Zacks Consensus Estimate has increased $0.12 to $14.68 per share. IDXX boasts an average earnings surprise of +6.1%.

With a solid Zacks Rank and top-tier Momentum and VGM Style Scores, IDXX 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.

Taking full advantage of the stock market and investing with confidence are common goals for new and old investors, and Zacks Premium offers many 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.

Zacks Premium includes access to the Zacks Style Scores as well.

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 ScoreValue investors love finding good stocks at good prices, especially before the broader market catches on to a stock's true value. Utilizing ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and many other multiples, the Value Style Score identifies the most attractive and most 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 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 The Zacks Rank is a proprietary stock-rating model that harnesses the power of earnings estimate revisions, or changes to a company's earnings expectations, to help investors build a successful portfolio.

Investors can count on the Zacks Rank's success, with #1 (Strong Buy) stocks producing an unmatched +23.7% 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.

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 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.

A stock with a #4 (Sell) or #5 (Strong Sell) rating, for instance, even one with Scores of A and B, will still have a declining earnings forecast, and a greater chance its share price will fall 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 #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 12.13; value investors should take notice.

For fiscal 2026, four analysts revised their earnings estimate upwards in the last 60 days, and the Zacks Consensus Estimate has increased $0.30 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.

Shares of Hilltop Holdings Inc. (NYSE: HTH - Get Free Report) have received a consensus rating of "Hold" from the five brokerages that are presently covering the firm, Marketbeat.com reports. Four research analysts have rated the stock with a hold recommendation and one has issued a buy recommendation on the company. The average 1 year target

-

DALLAS--(BUSINESS WIRE)--Hilltop Holdings Inc. (NYSE: HTH) (“Hilltop”), a Dallas-based financial holding company, will host a live webcast and conference call at 8:00 AM Central (9:00 AM Eastern) on Friday, April 24, 2026. Hilltop Chairman, President and CEO Jeremy B. Ford and Hilltop CFO William B. Furr will review first quarter 2026 financial results.

Interested parties can access the conference call by dialing 800-715-9871 (Toll Free North America) or (+1) 646-307-1963 (International Toll) and then using the conference ID 4151629. The conference call also will be webcast simultaneously on Hilltop’s Investor Relations website (http://ir.hilltop.com).

About Hilltop Holdings Inc.

Hilltop Holdings is a Dallas-based financial holding company. Its primary line of business is to provide business and consumer banking services from offices located throughout Texas through PlainsCapital Bank. PlainsCapital Bank’s wholly owned subsidiary, PrimeLending, provides residential mortgage lending throughout the United States. Hilltop Holdings’ broker-dealer subsidiaries, Hilltop Securities Inc. and Momentum Independent Network Inc., provide a full complement of securities brokerage, institutional and investment banking services in addition to clearing services and retail financial advisory. At March 31, 2026, Hilltop employed approximately 3,520 people and operated 303 locations in 47 states. Hilltop Holdings' common stock is listed on the New York Stock Exchange and NYSE Texas under the symbol "HTH." Find more information at Hilltop.com, PlainsCapital.com, PrimeLending.com and Hilltopsecurities.com.

More News From Hilltop Holdings Inc.

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The market expects Hilltop Holdings (HTH - Free Report) to deliver a year-over-year decline in earnings on lower revenues when it reports results for the quarter ended March 2026. This widely-known consensus outlook is important in assessing the company's earnings picture, but a powerful factor that might influence its near-term stock price is how the actual results compare to these estimates.

The earnings report, which is expected to be released on April 23, might help the stock move higher if these key numbers are better than expectations. On the other hand, if they miss, the stock may move lower.

While the sustainability of the immediate price change and future earnings expectations will mostly depend on management's discussion of business conditions on the earnings call, it's worth handicapping the probability of a positive EPS surprise.

Zacks Consensus EstimateThis insurance holding compnay is expected to post quarterly earnings of $0.55 per share in its upcoming report, which represents a year-over-year change of -15.4%.

Revenues are expected to be $308.88 million, down 3% from the year-ago quarter.

Estimate Revisions TrendThe consensus EPS estimate for the quarter has been revised 2.7% lower over the last 30 days to the current level. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period.

Investors should keep in mind that the direction of estimate revisions by each of the covering analysts may not always get reflected in the aggregate change.

Price, Consensus and EPS Surprise

Earnings WhisperEstimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. This insight is at the core of our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction).

The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.

Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only.

A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP.

Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell).

How Have the Numbers Shaped Up for Hilltop Holdings?For Hilltop Holdings, the Most Accurate Estimate is lower than the Zacks Consensus Estimate, suggesting that analysts have recently become bearish on the company's earnings prospects. This has resulted in an Earnings ESP of -6.71%.

On the other hand, the stock currently carries a Zacks Rank of #3.

So, this combination makes it difficult to conclusively predict that Hilltop Holdings will beat the consensus EPS estimate.

Does Earnings Surprise History Hold Any Clue?Analysts often consider to what extent a company has been able to match consensus estimates in the past while calculating their estimates for its future earnings. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number.

For the last reported quarter, it was expected that Hilltop Holdings would post earnings of $0.46 per share when it actually produced earnings of $0.69, delivering a surprise of +50.00%.

Over the last four quarters, the company has beaten consensus EPS estimates four times.

Bottom LineAn earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss.

That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.

Hilltop Holdings doesn't appear a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release.

Expected Results of an Industry PlayerSouthState (SSB - Free Report) , another stock in the Zacks Banks - Southeast industry, is expected to report earnings per share of $2.22 for the quarter ended March 2026. This estimate points to a year-over-year change of +3.3%. Revenues for the quarter are expected to be $674.57 million, up 7% from the year-ago quarter.

The consensus EPS estimate for SouthState has been revised 0.9% higher over the last 30 days to the current level. However, a lower Most Accurate Estimate has resulted in an Earnings ESP of -0.08%.

When combined with a Zacks Rank of #3 (Hold), this Earnings ESP makes it difficult to conclusively predict that SouthState will beat the consensus EPS estimate. The company beat consensus EPS estimates in each of the trailing four quarters.

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