A month has gone by since the last earnings report for Sonic Automotive (SAH). Shares have added about 4.7% in that time frame, underperforming the S&P 500.

Will the recent positive trend continue leading up to its next earnings release, or is Sonic Automotive due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important drivers.

Sonic's Q2 Earnings Beat Estimate

Sonic reported second-quarter 2024 adjusted earnings per share of $1.47, which surpassed the Zacks Consensus Estimate of $1.39 but fell 19.7% from the year-ago quarter’s figure. 

Total revenues amounted to $3.45 billion, missing the Zacks Consensus Estimate of $3.55 billion and declining from the year-ago quarter’s figure of $3.65 billion.

Quarter in Detail

On a consolidated basis, revenues from sales of new vehicles, used vehicles and wholesale vehicles totaled $1.55 billion (down 3% year over year), $1.19 billion (down 9% year over year) and $71.3 million (down 22% year over year), respectively. Revenues from Parts, Service and Collison Repair remained flat at $444.1 million. Finance, Insurance and other revenues fell 2% year over year to $172.6 million. Total gross profit declined 5% to $539.1 million.

In the Franchised Dealerships segment, revenues from the sales of new vehicles, used vehicles and wholesale vehicles totaled $1.53 billion (down 3% year over year), $732.1 million (down 5% year over year) and $48.4 million (down 13% year over year), respectively. Revenues from Parts, Service and Collison Repair remained flat at $434.4 million. Finance, Insurance and other revenues fell 6% to $124.2 million. Same-store revenues from the Franchised Dealership segment fell 3% to roughly $2.89 billion. Same-store retail units of new and used vehicles came in at 52,165, up 1% on a yearly basis.

The EchoPark segment reported quarterly revenues of $517.3 million, marking a 14% decrease from the year-ago figure. Revenues comprised $448.9 million (down 14%) from used vehicle sales, $21.9 million (down 38%) from wholesale vehicle sales and $46.5 million (up 13%) from Finance, Insurance and Other. Its stores sold 16,641 and 2,593 used and wholesale vehicle units, down 3% and 20%, respectively, on a year-over-year basis. Same-store revenues from the EchoPark segment rose 10% to roughly $518.8 million. Same-store retail units of used and wholesale vehicles came in at 16,641 and 2,593, up 23% and 8%, respectively, on a yearly basis.

In the Powersports segment, revenues from the sales of new vehicles, used vehicles and wholesale vehicles totaled $21.7 million (down 13% year over year), $5.3 million (down 28% year over year) and $0.9 million (up 125% year over year), respectively. Revenues from Parts, Service and Collison Repair dropped 6% to $9.7 million. Finance, Insurance and other revenues remained flat on a year-over-year basis at $2 million. Same-store revenues from the Powersports segment declined 12% to $39.6 million. Same-store retail units of new and used vehicles came in at 1,193 and 522, down 15% and 24%, respectively, on a year-over-year basis.