Despite Disruptions, Sonic Automotive Reports Strong Q2 Results
- Sonic Automotive’s shares increased by 9% to $61.22
- Q2 net income up 76% year-over-year at $41.2 million
- CDK Global software outage reduced pretax income by $30 million and net income by 64 cents a share
- Revenue decreased to $3.45 billion from $3.65 billion in the year-ago quarter
Sonic Automotive’s shares rose by 9% to $61.22 following the release of its second-quarter earnings report, which showed a 76% year-over-year increase in net income despite the impact of the CDK Global software outage. The company reported Q2 earnings of $41.2 million or $1.18 per share, compared to $23.4 million or 65 cents a share in the previous quarter. Analysts had expected $1.35 a share. Although the CDK outage reduced Sonic Automotive’s pretax income by $30 million and net income by 64 cents per share, the company’s diversified cash flow streams helped maintain its financial position. Revenue for the quarter ended June 30 decreased to $3.45 billion from $3.65 billion in the year-ago period, which was lower than analyst expectations of $3.56 billion.
Factuality Level: 8
Factuality Justification: The article provides accurate and relevant information about Sonic Automotive’s financial performance and its impact from the CDK Global software outage. It includes specific numbers and quotes from the company’s CFO, making it a well-researched and objective report on the topic.
Noise Level: 2
Noise Justification: The article provides relevant information about Sonic Automotive’s performance and how it was affected by the CDK Global software outage, as well as comparisons to other automotive retailers. It also includes specific financial figures and quotes from the company’s CFO. However, it could benefit from more context on the broader market trends or industry implications of such disruptions.
Public Companies: Sonic Automotive (SAH), AutoNation (AN), Group 1 Automotive (GPI), Asbury Automotive (ABG), CDK Global (CDK)
Key People: Heath Byrd (Chief Financial Officer)
Financial Relevance: Yes
Financial Markets Impacted: Stocks of Sonic Automotive and related automotive retailers such as AutoNation, Group 1 Automotive and Asbury Automotive
Financial Rating Justification: The article discusses the financial performance of Sonic Automotive and its impact on the stock prices of the company and other automotive retailers, making it relevant to financial topics and impacting financial markets.
Presence Of Extreme Event: No
Nature Of Extreme Event: No
Impact Rating Of The Extreme Event: No
Extreme Rating Justification: There is no mention of an extreme event in the article.
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