Sonic Automotive Inc
F:SA8A
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Sonic Automotive Inc
F:SA8A
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Sonic Automotive Inc
Sonic Automotive is a retail auto dealer company. It sells new and used cars and light trucks through dealership locations, and it also earns money from financing, vehicle service, repairs, and parts. A big part of its business is helping customers buy vehicles, then keeping those vehicles in service through maintenance and repair work. Its main customers are individual car buyers, people trading in older vehicles, and owners who return for service after the sale. The company makes money in several ways: profit on vehicle sales, commissions and fees from arranging financing and insurance, and recurring revenue from repair, maintenance, and parts. It also participates in the used-vehicle market through its EchoPark brand, which focuses on used cars sold in a more streamlined way. What makes Sonic different is that it sits close to the end customer in the auto value chain. It is not a car maker; it is a retailer and service provider that connects manufacturers, lenders, and vehicle owners. That gives it a business model with both one-time sales and steadier follow-up income from service work.
Sonic Automotive is a retail auto dealer company. It sells new and used cars and light trucks through dealership locations, and it also earns money from financing, vehicle service, repairs, and parts. A big part of its business is helping customers buy vehicles, then keeping those vehicles in service through maintenance and repair work.
Its main customers are individual car buyers, people trading in older vehicles, and owners who return for service after the sale. The company makes money in several ways: profit on vehicle sales, commissions and fees from arranging financing and insurance, and recurring revenue from repair, maintenance, and parts. It also participates in the used-vehicle market through its EchoPark brand, which focuses on used cars sold in a more streamlined way.
What makes Sonic different is that it sits close to the end customer in the auto value chain. It is not a car maker; it is a retailer and service provider that connects manufacturers, lenders, and vehicle owners. That gives it a business model with both one-time sales and steadier follow-up income from service work.
Record quarter: Sonic reported record second-quarter total revenue of $3.9 billion, up 8% year over year, and record gross profit of $616.2 million, up 2%.
Franchise strength: New vehicle GPU stayed above the top end of full-year guidance, prompting management to raise full-year new GPU guidance to $2,850 to $3,000 per unit.
EchoPark momentum: EchoPark revenue rose 15% and retail used volume increased 17%, with management saying July growth is running above 20% and that the business has room to keep expanding.
Fixed ops focus: Fixed operations remained a major profit anchor, but management said industry growth was too weak in Q2 and reaffirmed a push for mid-single-digit to upper-single-digit growth.
Powersports surge: Powersports delivered record quarterly revenue and gross profit, helped by recent Harley-Davidson acquisitions and management’s view that the segment still has significant upside.
Capital return: Sonic ended the quarter with about $676 million of total available liquidity and its board approved a cash dividend of $0.41 per share.