Sonic Automotive Q2 revenue up 6% but misses estimates

Sonic Automotive

24/07/2025 11:55

Overview

Sonic Automotive Q2 revenue grows 6% but misses analyst expectations, per LSEG data

Adjusted EPS for Q2 beats analyst expectations, rising 49% yr/yr

Co reports net loss of $45.6 mln due to impairment charge

Outlook

Sonic expects $500 mln annualized revenue addition from 4 Jaguar Land Rover dealerships

Company notes uncertainty from tariffs affecting consumer demand and pricing

Result Drivers

IMPAIRMENT CHARGE - $172.4 mln non-cash pre-tax franchise asset impairment charge led to net loss

ECHO PARK PERFORMANCE - EchoPark Segment achieved record gross profit and adjusted EBITDA despite revenue decline

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Revenue
Miss
$3.66 bln
$3.68 bln (8 Analysts)
Q2 Adjusted EPS
Beat
$2.19
$1.63 (6 Analysts)
Q2 EPS
-$1.34
Q2 Net Income
-$45.60 mln


Analyst Coverage

The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 4 "strong buy" or "buy", 4 "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 $74.00, about 8% below its July 23 closing price of $79.95

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

Press Release: ID:nBw6Xq41Sa

(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.)