Sonic Automotive Earnings: 2025 Looks to Be a Year of Acquisitions

Sonic Automotive’s fourth-quarter adjusted diluted earnings per share of $1.51 fell 7.4% year over year but beat the $1.46 LSEG consensus. We see the stock falling 4% on Feb. 12 as not deserved because the quarter was solid in our view, and 2025 should be a good year for the company, provided possible 25% tariffs on Canadian and Mexican imports do not derail the US economy. We are not changing our fair value estimate, but we will reassess all modeling inputs when we roll our model forward for the 10-K.