Auto retailer Sonic's Q3 revenue rises 14%, beating estimates

Sonic Automotive

23/10/2025 11:56

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/Miss
Actual
Consensus Estimate
Q3 Revenue
Beat
$3.97 bln
$3.60 bln (8 Analysts)
Q3 Adjusted EPS
Miss
$1.41
$1.70 (7 Analysts)
Q3 EPS
$1.33
Q3 Net Income
$46.80 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 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: ID:nBw6NtT61a

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact RefinitivNewsSupport@thomsonreuters.com.

(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.)