Sonic Automotive ( (SAH) ) has released its Q4 earnings. Here is a breakdown of the information Sonic Automotive presented to its investors.
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Sonic Automotive, Inc., based in Charlotte, North Carolina, is a prominent player in the automotive retail industry, focusing on both new and used vehicle sales and services, as well as the powersports market. The company is known for its innovative strategies and commitment to enhancing customer experiences across its various segments.
In its latest earnings report, Sonic Automotive has announced record quarterly revenues of $3.9 billion for the fourth quarter of 2024, marking a 9% increase from the previous year. The company also reported a notable net income of $58.6 million, representing a 51% rise year-over-year, driven by strategic acquisitions and a successful technician hiring initiative.
Key financial highlights include a 12% increase in franchised dealership segment revenues to $3.4 billion and a significant improvement in EchoPark’s segment performance, with adjusted EBITDA climbing to $4.2 million. Despite a 9% decrease in EchoPark segment revenues, gross profit rose by 14%, showcasing effective cost management and operational efficiencies.
The powersports segment also reported positive growth with a 13% revenue increase in the fourth quarter. The company’s strategic acquisitions, including Audi New Orleans and Motorcycles of Charlotte & Greensboro, are expected to contribute approximately $145 million in annualized revenues.
Looking forward, Sonic Automotive remains optimistic about its growth prospects for 2025, with management focusing on expanding market share across its segments and optimizing its expense structure to drive long-term value for stakeholders.
