SONIC AUTOMOTIVE Reports Q4 FY2022 Earnings Results on February 15, 2023
March 27, 2023
Earnings Overview
SONIC AUTOMOTIVE ($NYSE:SAH) released its financial results for the fourth quarter of FY2022 (ending December 31, 2022) on February 15, 2023. The quarter’s total revenue was USD -190.9 million, a year-over-year drop of 298.2%. However, the company’s net income increased 12.7% year-over-year, totaling USD 3590.6 million.
Transcripts Simplified
Sonic Automotive reported record fourth quarter and full-year revenues of $3.6 billion and $14 billion respectively. Despite a $320 million pre-tax non-cash impairment charge, they reported adjusted earnings per share of $2.61 and $9.61 respectively. New vehicle retail sales volume and used vehicle business both outperformed industry volume. F& I performance was strong due to higher retail unit volume.
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Sonic Automotive. More…
| Total Revenues | Net Income | Net Margin |
| 14k | 88.5 | 2.0% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Sonic Automotive. More…
| Operations | Investing | Financing |
| 406.1 | -299.7 | -176.6 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Sonic Automotive. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 4.98k | 4.08k | 24.71 |
Key Ratios Snapshot
Some of the financial key ratios for Sonic Automotive are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 10.2% | 24.5% | 2.2% |
| FCF Margin | ROE | ROA |
| 1.3% | 19.2% | 3.9% |
Share Price
On Wednesday, February 15, 2023, SONIC AUTOMOTIVE reported its fourth quarter financial results for fiscal year 2022. The stock opened at $60.5 and closed at $60.6, down 1.1% from the previous closing price of 61.3. Moreover, the company reported strong growth in used vehicle sales which were up by 10% year-over-year.
The dividend marks the company’s ninth consecutive quarterly payment. The company was able to successfully navigate through these challenging times due to its strong financial position, strategic investments, and innovative digital capabilities. Live Quote…
Analysis
At GoodWhale, we conducted an in-depth analysis of SONIC AUTOMOTIVE‘s wellbeing. Our Risk Rating revealed that SONIC AUTOMOTIVE is a medium risk investment in terms of its financial and business aspects. While this is not the highest level of risk, it could be wise to keep a close eye on their progress. Upon further investigation, we detected two risk warnings in SONIC AUTOMOTIVE’s income sheet. To learn more about these warnings, become a registered user and gain access to our detailed research. With this information, you can make more informed decisions about your investments. More…
Peers
The company operates in a highly competitive industry with several large competitors, including Asbury Automotive Group Inc, Lithia Motors Inc, Penske Automotive Group Inc. Sonic Automotive Inc has a strong market position and is well-positioned to compete effectively against its rivals.
– Asbury Automotive Group Inc ($NYSE:ABG)
Asbury Automotive Group Inc is a large publicly traded company that operates in the automotive retailing industry. The company has a market capitalization of 3.9 billion as of 2022 and a return on equity of 31.39%. Asbury Automotive Group Inc is one of the largest automotive retailers in the United States and operates over 100 dealerships across the country. The company sells and services a variety of new and used vehicles, and also provides financing and insurance products to its customers.
– Lithia Motors Inc ($NYSE:LAD)
Lithia Motors Inc is an American automotive retailer. It is the ninth largest automotive retailer in the United States and is publicly traded on the New York Stock Exchange. The company operates through three segments: Domestic, Import, and Luxury. Lithia also has a minority investment in an electric vehicle (EV) company.
Lithia’s market cap is 6.48B as of 2022. The company has a Return on Equity of 26.55%. Lithia Motors Inc is an American automotive retailer. It is the ninth largest automotive retailer in the United States and is publicly traded on the New York Stock Exchange. The company operates through three segments: Domestic, Import, and Luxury. Lithia also has a minority investment in an electric vehicle (EV) company.
– Penske Automotive Group Inc ($NYSE:PAG)
Penske Automotive Group is an American multinational automotive retailing company headquartered in Bloomfield Hills, Michigan. As of early 2021, it operated over 3,300 automotive dealerships and 250 collision repair centers in the United States and United Kingdom. Penske Automotive Group is a Fortune 500 company with revenue of $19.6 billion as of 2020. The company was founded in 1927 by Roger Penske and is currently led by CEO Jose Munoz.
Summary
SONIC AUTOMOTIVE reported a decrease of 298.2% in total revenue for the 4th quarter of FY2022, ending on December 31, 2022 compared to the same period of the previous year.
However, their net income saw an increase of 12.7% year over year, surpassing USD 3590.6 million. Investors should consider this financial report when analyzing whether to invest in SONIC AUTOMOTIVE. The overall decrease in total revenue should be taken into account when weighing the potential risks and rewards of investing in the company. However, the increase in net income could signal a chance for investors to potentially benefit from the company’s current financial success.
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