Sonic Automotive

SAH

Market cap $2.06B

The president of one of the largest public auto dealership groups said on an earnings call that tariff costs are becoming unsustainable for automakers Manufacturers are likely to start passing costs on to buyers through higher prices or by cutting costs on parts.

SAH's Q4 EPS edges up, but falling revenues, high debt, tariff risks and weaker margins raise fresh concerns about the stock's near-term outlook.

SAH's Q4 EPS rises 1% but misses estimates as revenues slip 1% Y/Y, with dealership and EchoPark sales under pressure.

Sonic Automotive, Inc. (SAH) Q4 2025 Earnings Call Transcript

Although the revenue and EPS for Sonic Automotive (SAH) give a sense of how its business performed in the quarter ended December 2025, it might be worth considering how some key metrics compare with Wall Street estimates and the year-ago numbers.

Sonic Automotive (SAH) came out with quarterly earnings of $1.52 per share, missing the Zacks Consensus Estimate of $1.53 per share. This compares to earnings of $1.51 per share a year ago.

CHARLOTTE, N.C.--(BUSINESS WIRE)--Sonic Automotive, Inc. (“Sonic Automotive,” “Sonic,” the “Company,” "we," "us" or "our") (NYSE:SAH), one of the nation's largest automotive retailers, today reported financial results for the fourth quarter and fiscal year ended December 31, 2025. Fourth Quarter 2025 Financial Summary Total revenues of $3.9 billion, down 1% year-over-year; fourth quarter record total gross profit of $598.7 million, up 4% year-over-year Reported net income of $46.9 million, down.

Evaluate the expected performance of Sonic Automotive (SAH) for the quarter ended December 2025, looking beyond the conventional Wall Street top-and-bottom-line estimates and examining some of its key metrics for better insight.

Sonic Automotive remains a 'buy,' despite a 13.6% share price decline and mixed profitability, driven by compelling valuation versus cash flows. SAH's Q3 revenue rose to $3.97 billion, fueled by front-loaded demand and higher per-unit pricing, but net income contracted due to margin pressures. Management continues to pursue growth via acquisitions and EchoPark expansion, expecting margin improvement in the upcoming quarter, despite industry headwinds.

Sonic Automotive (SAH) doesn't possess the right combination of the two key ingredients for a likely earnings beat in its upcoming report. Get prepared with the key expectations.