Sonic Automotive posts third-quarter adjusted earnings of $1.30 a share, below expectations
Revenue came in at $3.99 billion, against $4.07 billion expected.
Published
Sonic Automotive reported adjusted earnings of $1.30 a share for the third quarter. That was $0.39 below expectations. Revenue was $3.99 billion, against $4.07 billion expected. Adjusted earnings came in about 23 per cent below expectations, while revenue was about 2 per cent short. The shortfall sits in profit, not in sales.
David Smith, Chairman and CEO of Sonic Automotive, said growth in the EchoPark and Powersports segments offset declines in Franchised Dealerships. He said that combination drove record quarterly revenue and gross profit. The company is leaning on EchoPark and Powersports to carry the group while its franchised dealerships weaken. How long that franchised weakness lasts is the central question. Record revenue and gross profit sit uneasily beside a miss at the bottom line. The segment breakdown in the next report should show whether that tension persists.
The board approved a quarterly cash dividend of $0.41 a share. It is payable on January 15, 2027, to stockholders of record on December 15, 2026. The dividend does not address the gap in earnings.
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