Sonic Automotive, Inc (SAH) has reported a 21.18 percent rise in profit for the quarter ended Dec. 31, 2016. The company has earned $37.64 million, or $0.83 a share in the quarter, compared with $31.06 million, or $0.62 a share for the same period last year. On the other hand, adjusted net income for the quarter stood at $29.72 million, or $0.66 a share compared with $30.41 million or $0.60 a share, a year ago. Revenue during the quarter grew 3.49 percent to $2,556.91 million from $2,470.64 million in the previous year period. Gross margin for the quarter contracted 19 basis points over the previous year period to 14.54 percent. Total expenses were 96.77 percent of quarterly revenues, down from 97.18 percent for the same period last year. This has led to an improvement of 41 basis points in operating margin to 3.23 percent.
Operating income for the quarter was $82.63 million, compared with $69.74 million in the previous year period.
B. Scott Smith, the Company’s chief executive officer, noted, "The 2016 year proved to be a bit of a roller coaster ride from month-to-month as we believe consumer uncertainty, the effect of recalls and stop-sales made it challenging for all automotive retailers. We expect 2017 to be consistent with the 2016 environment for dealers and anticipate new vehicle industry volume to be between 17.0 million and 17.5 million units."
For financial year 2017, Sonic Automotive, Inc projects diluted earnings per share from continuing operations to be in the range of $2 to $2.10.
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