Overview

* Sonic Q3 revenue rises 14% yr/yr to nearly $4 bln, beating analysts' expectations

* However, net income for Q3 falls 37% yr/yr due to higher medical expenses and tax rate

* Adjusted EPS misses estimates

Outlook

* Company notes uncertainty around tariffs affecting demand and pricing

* Sonic expects acquisition of Jaguar Land Rover Santa Monica to add $125 mln in annual revenue

Result Drivers

* POWERSORTS PERFORMANCE - Record sales volume at Sturgis Motorcycle Rally and improved inventory management drove all-time record quarterly results in the Powersports Segment

* FRANCHISED DEALERSHIPS GROWTH - Franchised Dealerships Segment saw record fixed operations and F&I gross profits, contributing over 75% of total gross profit mix

* ECHOPARK CHALLENGES - EchoPark Segment faced vehicle gross margin headwinds, leading to a decrease in revenues and gross profit

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q3 Beat $3.97 $3.60

Revenue bln bln (8

Analysts

)

Q3 Miss $1.41 $1.70 (7

Adjusted Analysts

EPS )

Q3 EPS $1.33

Q3 Net $46.80

Income mln

Analyst Coverage

* The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 3 "strong buy" or "buy", 5 "hold" and 1 "sell" or "strong sell"

* The average consensus recommendation for the auto vehicles, parts & service retailers peer group is "buy."

* Wall Street's median 12-month price target for Sonic Automotive Inc ( SAH ) is $82.00, about 5.5% above its October 21 closing price of $77.49

* The stock recently traded at 11 times the next 12-month earnings vs. a P/E of 12 three months ago

Press Release:

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)