Charlotte-based Sonic Automotive reported second-quarter earnings Tuesday morning that were in line with Wall Street expectations thanks to strong consumer demand for new and used cars.
For the three months that ended June 30, the auto dealer reported earnings of $22.8 million, up from $14.8 million the same quarter a year ago, according to a securities filing.
Earnings from continuing operations for the second quarter were $23 million, or 50 cents a share, in line with the consensus estimate from analysts surveyed by Zacks Investment Research.
Included in Sonic’s reported profit was a pre-tax loss of $3.4 million related to the company’s operations of EchoPark, a standalone used-car concept rolled out in Denver in 2014. Sonic said it opened two new EchoPark stores in the Denver market in the last quarter.
Revenue for the quarter was $2.38 billion. In the second quarter of 2015, revenue totaled $2.42 billion.
“The automotive retail environment continues to demonstrate strength and sustainability. Historic low interest rates and a fantastic product offering by manufacturers have supported customer demand for new and pre-owned vehicles,” said Scott Smith, Sonic’s president.
In Charlotte, Sonic Automotive has rolled out its One Sonic One-Experience sales model, which is intended to eliminate the “pain points” of car-buying, such as price-haggling. Jeff Dyke, Sonic’s executive vice president of operations said Tuesday that customers’ responses to the company’s “new process, technology and culture have been excellent.”
Sonic is a Fortune 500 company with its headquarters in Cotswold.