P&A Providers & Administrators
MenuMENU
SearchSEARCH

Sonic Q1 Results Better than Year Ago but Less than Wall St. Expected

April 27, 2010
2 min to read


DETROIT - Sonic Automotive, the third-largest U.S dealership group, today posted a quarterly profit that fell short of Wall Street estimates but beat year-ago results, Reuters reported.


First-quarter net income totaled $4.15 million or 8 cents per share. Revenue rose 13 percent to $1.56 billion.

Ad Loading...


"Not long ago, our stock price was below $1 per share, and there was a lot of uncertainty about our company," Sonic President Scott Smith said during a conference call with analysts.


On an operating basis and excluding one-time items, Sonic posted a profit of 14 cents a share, compared with analysts' expectations of 19 cents, according to Thomson Reuters I/B/E/S.


Adjusted earnings on continuing operations totaled 14 cents per diluted share, up from 10 cents a year ago.


The first-quarter results for Sonic, which was on the verge of bankruptcy less than a year ago, followed last year's fourth-quarter results, which saw the retailer get back into the black.


Last spring, the company restructured debts and was allowed to postpone a $90 million debt payment until 2012.

Ad Loading...


Also mentioned in the first-quarter report and during a conference call:

  • Overall new-vehicle retail volume was up 10 percent, and used-vehicle retail volume was up 25 percent for the first quarter compared with the same time last year. It was Sonic's fourth straight quarter of used-vehicle sales growth.

  • Service and parts revenue for the first quarter was up about 3 percent compared with the same quarter last year.

  • Sonic's forecast is for U.S. sales of 11 million vehicles this year -- and sales performed at that level during the first quarter. Some analysts are forecasting as high as 13 million light-vehicle sales this year.

Jeff Dyke, Sonic's executive vice president, said he is "cautiously optimistic" the industry will enjoy a slow recovery this year, although he would not predict 12 million.

  • Employee satisfaction is Sonic's No. 1 priority and one that the company says should lead to greater customer satisfaction. Overall employee turnover was a record low of just less than 25 percent on an annual basis.

  • Like No. 1 auto retailer AutoNation, Sonic saw double-digit sales growth in most regions, even Florida. Only a couple of markets reported single-digit growth.

Sonic Automotive, based in Charlotte, N.C., operates 145 franchises at 122 dealerships.

More Industry

Orange electric vehicle charging station.
Industry•by Lauren Lawrence•October 20, 2026

Charger Network Growth Slows

Despite a projected increase in public EV chargers in 2026, charging infrastructure remains a top concern for consumers as the gap between the most and least EV-friendly places remains substantial.

Read More →
Fan of $100 bills atop a white envelope
Industry•by Hannah Mitchell•October 13, 2026

Lenders, Consumers Take on More Auto Loan Risk

September records loosened credit access the most in over a decade as buyers took advantage of the conditions to afford trading, though loan applications fell.

Read More →
Red type R Honda civic parked on road.
Industry•by Lauren Lawrence•October 13, 2026

Next-Gen Hybrids in Sight

Dealerships can expect to see revamped hybrids from Honda next year as the company rolls out a new system and model lineup.

Read More →
Ad Loading...
Dodge ram emblem on orange vehicle exterior
Industry•by Hannah Mitchell•October 6, 2026

Gem State Stores Change Hands

A larger auto group founded in the industry’s early years sold two franchises to a neighbor group that's on a growth spurt.

Read More →
Graphic of model car driving on fake road.
Industry•by Lauren Lawrence•October 6, 2026

Charging In Motion

Honda has been researching wireless in-motion charging for electric vehicles since 2025, and new technology developments have put it a step closer to a final product.

Read More →
front grill of a Ford truck with blue Ford emblem
Industry•by Lauren Lawrence•September 30, 2026

Twin Cities Stores Sell

Minnesota-based Walser Automotive Group made what it called the most significant acquisition in its history with a three-rooftop deal in Minneapolis.

Read More →
Ad Loading...
Diesel engine on a production line in a factory
Industry•by Hannah Mitchell•September 29, 2026

U.S. Auto Sales Still Below Prepandemic Levels

Mobility Global industry observers don’t expect the market to return to the higher volumes that became routine before Covid but to stay well below its potential.

Read More →
Front of red tesla car.
Industry•by Lauren Lawrence•September 22, 2026

The Powertrain Shift

Electric-vehicle owners are backpedaling, according to new data, with product availability driving many to shift back to gas-powered engines.

Read More →
White BMW SUV driving on road.
Industry•by Hannah Mitchell•September 15, 2026

Achromatic Autos

The shades that dominate the U.S. car market don’t call attention to themselves, though grayscale may have plateaued after a 30-year upswing, research shows.

Read More →
Ad Loading...
Line of eclipse SUVs in parking lot.
Industry•by Lauren Lawrence•September 15, 2026

Used-Vehicle Affordability Worsens

Listing prices in August defied seasonal trends, rising above $27,000 for the second time this year.

Read More →