Sonic Automotive Q2 revenue beats estimates on powersports segment growth
SAH•Outlook and analyst context
Sonic expects EchoPark footprint expansion to begin in the fourth quarter of 2026. The company also said its liquidity position allows flexibility for growth investments and capital returns.
The current average analyst rating on the shares is "buy," with 6 "strong buy" or "buy" recommendations, 6 "hold" and 1 "sell" or "strong sell." The median 12-month price target is $89.30, about 20.7% below the July 29 closing price of $112.66. The stock recently traded at 15 times next-12-month earnings, versus a P/E of 10 three months ago.
Segment performance and acquisition impact
EchoPark segment retail used-vehicle unit sales rose 17% year over year, driving record segment gross profit, although per-unit profitability declined.
Same-store retail new and used vehicle gross profit per unit declined 16% and 13% year over year, respectively, amid flat new-vehicle sales and a challenging consumer affordability backdrop.
The powersports segment achieved record second-quarter revenue and gross profit, supported by recent Harley-Davidson dealership acquisitions. Sonic said it completed previously announced Harley-Davidson dealership acquisitions, adding about $100 million in annualized revenue.
Quarterly results beat revenue expectations
Sonic Automotive said second-quarter revenue rose 8% year over year, beating analyst expectations, as the U.S. auto retailer reported stronger performance across several businesses.
Adjusted EPS fell 17% year over year to $1.79, while net income rose sharply from the prior year to $57.40 million. Revenue came in at $3.93 billion, compared with the $3.77 billion consensus estimate from eight analysts.
