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Sonic Automotive posts better-than-expected Q3 earnings

Charlotte-based Sonic Automotive reported third-quarter gain that were improved than approaching as sales rose to record highs in both a new and used automobile categories.

The automobile dealer’s net income from stability operations for a entertain totaled $27.10 million for a quarter, or 53 cents a share, for a 3 months finale Sept. 30. Analysts surveyed by Bloomberg had estimated 47 cents a share.

Sonic’s quarterly income was $2.49 billion, above a Wall Street foresee of $2.46 billion.

The association pronounced new and used automobile sales reached record highs for a quarter. New sell sales totaled 36,891, adult 1.6 percent over a same entertain final year. Pre-owned sales totaled 30,467, adult 10.6 percent over a third entertain in 2014.

“The automotive sell sourroundings continues to enhance and benefaction us with opportunities to strengthen and grow a business,” Scott Smith, Sonic’s arch executive officer, pronounced in a statement.

Included in Sonic’s gain were about $3.7 million in costs associated to a EchoPark operations.

Sonic began rolling out a judgment of a standalone used-car stores in Denver final year, and Smith pronounced Wednesday that a association skeleton to open dual some-more Denver stores in a initial half of 2016. Additionally, Sonic pronounced it is in a routine of appropriation properties in dual additional, unnamed markets in that to hurl out a EchoPark concept.

Smith pronounced business have desired a “speed and ease” of a company’s One Sonic One-Experience sales model, that it has rolled out in Charlotte and that is dictated to discharge a “pain points” of car-buying, such as price-haggling.

In afternoon trade Wednesday, Sonic’s shares were adult over 7 percent to $23.47.

Article source: http://www.charlotteobserver.com/news/business/article41685069.html

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