Sonic Automotive Inc.
) posted a 13.9% rise in earnings per share to 41 cents in the
first quarter of 2013 compared with 36 cents per share in the
corresponding quarter last year, but missed the Zacks Consensus
Estimate by a penny. Net income improved 2.6% to $21.7 million
from $21.1 million in the first quarter of 2012.
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Revenues in the quarter improved 8.1% to $2.08 billion,
marginally beating the Zacks Consensus Estimate of $2.04 billion.
The increase in revenues was driven by higher revenues in all the
businesses. Unit sales of new retail vehicles augmented 7.4% to
30,590 units and used vehicle sales improved 3.9% to 26,469
Revenues from new vehicles retailed rose 10.8% to $1.1 billion
while revenues from used vehicle (retail and wholesale) went up
5.9% to $578.0 million during the quarter. Revenues from parts
and service escalated 1.4% to $296.6 million and finance and
insurance business grew 13.7% to $65.5 million.
Gross profits improved 3.1% to $313.0 million in the quarter
compared with $303.8 million a year ago. Selling, general and
administrative expenses rose 3.7% to $245.8 million in the
quarter. However, operating income declined to $55.0 million or
2.6% of sales from $55.7 million or 2.9% of sales in the first
quarter of 2012.
Charlotte, N. C. based Sonic Automotive is a Fortune 500 company.
It is one of the largest automotive retailers in the U.S. The
company currently operates 100 dealerships spread across 15
states and 26 major metropolitan markets. It represents about 30
different automotive brands with the majority of the dealerships
being luxury and import brands. Sonic Automotive currently
retains a Zacks Rank #3 (Hold).
Some other stocks that are performing well in the industry where
Sonic Automotive operates include
Asbury Automotive Group, Inc.
). All these companies carry a Zacks Rank #2 (Buy).