Overview

• U.S. automotive retailer's Q4 revenue missed analyst expectations

• Adjusted EPS for Q4 beat analyst expectations

• Company repurchased $38.3 mln worth of shares in Q4

Outlook

• Company remains focused on operational excellence and cost control in 2026

• Sonic Automotive emphasizes strategic investments for growth initiatives

• Company aims to maintain flexibility in changing market conditions

Result Drivers

• FRANCHISED DEALERSHIPS - Record gross profit driven by increased parts, service, and collision repair gross profit

• ECHOPARK SEGMENT - Despite revenue decline, gross profit rose due to improved inventory and pricing strategies

• POWERSPORTS SEGMENT - Significant growth in revenue and gross profit contributed to overall results

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 4 "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 is $77.50, about 33% above its February 17 closing price of $58.28

• The stock recently traded at 8 times the next 12-month earnings vs. a P/E of 9 three months ago

Press Release: ID:nBw6ykbcNa

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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.)