) reported adjusted earnings per share of 50 cents in the second
quarter of the year, which was up 11.1% from 45 cents a year ago
but missed the Zacks Consensus Estimate by a penny. Earnings per
share rose despite a 7.2% fall in net earnings to $26.4 million
in the quarter due to lower outstanding shares compared with the
Total revenue for the quarter rose 3.8% to $2.2 billion. Of this,
revenue from vehicle trade increased 3.6% to $1.8 billion.
Meanwhile, revenue from Parts, service and collision repair went
up 4.0% to $307.0 million and from Finance, insurance and other
services grew 8.6% to $69.2 million.
Revenue from new vehicles retail escalated 5.2% to $1.2 billion.
New vehicle retail units increased 1.7% to 33,685 vehicles.
However, new vehicle gross margins declined to 5.4% from 5.9% in
the year-ago quarter.
Revenue from used vehicles retail rose marginally by about 1% to
$539.0 million. Used vehicle unit volume rose marginally to
26,599 vehicles. However, gross margin improved to 7.0% from 6.7%
in the year ago period.
Total gross margin remained flat at 14.7% in the quarter while
overall operating margin decreased to 2.8% from 2.9% a year ago.
Sonic Automotive announced the acquisition of Murray Mercedes
Benz of Denver and Murray BMW of Denver in May. These
acquisitions are expected to close in the third quarter of the
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 14
states and 25 major metropolitan markets. It represents about 25
different automotive brands with the majority of the dealerships
being luxury and import brands.
Sonic Automotive reiterated its guidance of earnings per share
from continuing operations between $1.93 and $2.03 for the full
year 2013. Currently, SAH retains a Zacks Rank #3 (Hold).
Other stocks that are performing well in the automotive retail
Asbury Automotive Group, Inc.
Group 1 Automotive Inc.
). Asbury Automotive and Lithia Motors are Zacks Rank #1 (Strong
Buy) stocks while Group 1 Automotive is a Zacks Rank #2 (Buy)
ASBURY AUTO GRP (ABG): Free Stock Analysis
GROUP 1 AUTO (GPI): Free Stock Analysis
LITHIA MOTORS (LAD): Free Stock Analysis
SONIC AUTOMOTVE (SAH): Free Stock Analysis
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