10-K · February 23, 2026
Sonic Automotive (SAH) describes a strategy focused on higher-margin Fixed Operations and F&I sales, EchoPark expansion (pre-owned specialty retail) and an omnichannel guest experience while optimizing its brand…
Earnings analysis · 10-Q
SAH earnings analysis
Filed April 30, 2026 · Our reading of the company's report
The latest report
Sonic Automotive reported first quarter 2026 revenues of $3.69 billion, slightly down 1% from the prior quarter's $3.87 billion, with an EPS of $1.62, exceeding analyst expectations of $1.41. The company faced some…
Read full summary
Sonic Automotive reported first quarter 2026 revenues of $3.69 billion, slightly down 1% from the prior quarter's $3.87 billion, with an EPS of $1.62, exceeding analyst expectations of $1.41. The company faced some challenges in margins but showed resilience with a gross margin of 15.6% and a solid operating income of $118 million.
Gross and operating margin
How much of each revenue dollar the business keeps.
One point per quarterly or annual filing. Both margins are shares of that report's revenue.
From revenue to operating profit
Where each $100 of revenue went in this report.
Cost of sales, operating expenses, and what remained. Figures are rounded to whole dollars.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
Reported figures
- Earnings per share
- $1.62
What stood out
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EPS Exceeds Estimates
The diluted EPS for Q1 2026 was $1.62, surpassing expectations of $1.41, resulting in an EPS surprise of 14.89%.
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Stable Revenue Performance
Revenue for the quarter was $3.688 billion, down slightly by 0.5% from the previous quarter's $3.87 billion.
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Gross Margin Maintained at 15.6%
Gross margin remained steady at 15.6%, compared to 15.5% in the prior quarter.
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Operating Income at $118M
Operating income was reported at $118 million, reflecting strong operational performance despite revenue challenges.
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Strong Free Cash Flow
The company generated $151 million in free cash flow for the quarter.
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Impact of Share Buybacks
Sonic repurchased 2.1 million shares during the quarter, indicating management's confidence in the company's value.
What to watch
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Interest Rate Exposure
The company has a total of $2.2 billion in variable rate debt, exposing it to interest rate fluctuations potentially impacting expenses by $5.5 million for each 1% change.
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Weakness in Operating Margin
Operating margin decreased slightly to 3.2%, down from 3.4% in the previous quarter, indicating pressure on profitability.
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Inventory Management
Any fluctuations in inventory levels may impact the liquidity and working capital management strategies.
Management's outlook
Outlook deferred to earnings press release / call.
Earlier filings 4
10-Q · August 8, 2024
Sonic Automotive reported Q2 revenue of $3,453.0 million, down from $3,652.9 million in Q2 2023 (−$199.9M, −5.5%), while diluted EPS rose to $1.18 from $0.65. Gross profit declined to $539.1 million but operating income…
10-Q · October 26, 2023
Sonic Automotive reported Q3 revenue of $3,643.5 million, up from $3,448.1 million in Q3 2022, while diluted EPS declined to $1.92 from $2.23. Gross profit was essentially flat at $582.2 million, but operating income…
10-K · February 17, 2023
Sonic Automotive describes itself as "one of the largest automotive retailers in the United States (as measured by reported total revenue)" and is pursuing a dual strategy of growing franchise dealerships while…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.