Sonic Automotive misses on third-quarter earnings at $1.30 a share, with revenue of $3.99B
Revenue of $3.99B compares with $4.07B expected, a much smaller miss than on earnings.
Sonic Automotive's third-quarter profit missed by far more than its sales did. Adjusted earnings were $1.30 a share, $0.39 below expectations, a shortfall of about 23%. Revenue of $3.99B was about 2% short of the $4.07B expected.
David Smith, Chairman and CEO, said growth in the EchoPark and Powersports segments offset declines in Franchised Dealerships, "driving record quarterly revenue and gross profit."
A record top line beside a miss on earnings leaves the franchised business as the open question. If its decline persists, the other two segments have to keep making up the difference. The segment breakdown in the next report should show whether they do.
The board approved a quarterly cash dividend of $0.41 a share, payable January 15, 2027 to stockholders of record on December 15, 2026. The payout does nothing to close the gap in earnings.
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