Sonic Automotive (NYSE:SAH) Third Quarter 2024 Results

Key Financial Results

• Revenue: US$3.49b (down 4.2% from 3Q 2023).

• Net income: US$74.2m (up 8.5% from 3Q 2023).

• Profit margin: 2.1% (up from 1.9% in 3Q 2023). The increase in margin was driven by lower expenses.

• EPS: US$2.18 (up from US$1.96 in 3Q 2023).

All figures shown in the chart above are for the trailing 12 month (TTM) period

Sonic Automotive EPS Beats Expectations, Revenues Fall Short

Revenue missed analyst estimates by 1.6%. Earnings per share (EPS) exceeded analyst estimates by 48%.

Looking ahead, revenue is forecast to grow 7.8% p.a. on average during the next 3 years, compared to a 4.9% growth forecast for the Specialty Retail industry in the US.

Performance of the American Specialty Retail industry.

The company's shares are up 1.2% from a week ago.

Risk Analysis

We don't want to rain on the parade too much, but we did also find 2 warning signs for Sonic Automotive (1 is a bit concerning!) that you need to be mindful of.

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