CHARLOTTE, N.C. - Sonic Automotive, Inc. (NYSE:SAH), a major player in the U.S. automotive retail and service industry with a market capitalization of $2.3 billion and annual revenue of $13.9 billion, has recently expanded its operations with the acquisition of Audi New Orleans, the company's first franchise in Louisiana. This move brings Sonic Automotive's national franchise dealership count to 108. According to InvestingPro data, the company has demonstrated strong financial performance with a robust return over both three-month and five-year periods.
The newly acquired dealership, located in Metairie, Louisiana, was previously owned by the Bohn Brothers Automotive Group, a family business with over a century of history in the region. Audi New Orleans has been serving customers since its establishment in June 2009.
David B. Smith, Chairman and CEO of Sonic Automotive, expressed enthusiasm about the acquisition, stating, "It's an honor to continue the tradition of offering high-quality automotive sales and service experiences established in the greater New Orleans area by the Bohn family since 1924." The company's expansion comes as it maintains a P/E ratio of 11.64 and offers shareholders a dividend yield of 2.08%, having maintained dividend payments for 15 consecutive years.
The Bohn family conveyed their gratitude to customers and the dealership's team, emphasizing their anticipation for the continued service to the community under the new ownership.
This acquisition is a strategic addition to Sonic Automotive's portfolio, marking the company's 10th Audi dealership. Sonic Automotive, headquartered in Charlotte, North Carolina, is recognized as a Fortune 500 company and is dedicated to creating innovative and leading guest experiences in the automotive and powersports retail sectors.
The transaction was facilitated by Kerrigan Advisors, representing the Bohn Brothers Automotive Group. Financial details of the acquisition have not been disclosed.
Sonic Automotive aims to become the most valuable diversified automotive retail and service brand in America, with a focus on technology investments and a commitment to fulfilling ownership dreams and enriching lives.
This expansion into the Louisiana market is part of Sonic Automotive's broader growth strategy, as the company continues to enhance its service offerings and dealership experiences for customers across the United States. For investors seeking deeper insights into Sonic Automotive's financial health and growth prospects, InvestingPro offers comprehensive analysis through its Pro Research Report, one of 1,400+ detailed company analyses available to subscribers. The platform provides valuable metrics, expert insights, and detailed financial analysis to help investors make informed decisions.
The information for this report is based on a press release statement from Sonic Automotive, Inc.
In other recent news, Sonic Automotive has seen several developments. CFRA, a financial research firm, raised its 12-month price target for Sonic Automotive from $55.00 to $65.00, maintaining its Hold rating on the stock. The firm's earnings per share estimates for Sonic Automotive remain unchanged at $5.40 for the year 2024 and $5.90 for 2025. Seaport Global Securities upgraded Sonic Automotive's stock from Neutral to Buy, influenced by an analysis of the franchise auto retailer sector, which Seaport believes is undervalued. Needham, another financial analyst firm, raised its stock price target for Sonic Auto from $73 to $74, reflecting confidence in Sonic Auto's recent performance, particularly the growth and improved profitability in its EchoPark used vehicle segment.
In recent developments, Sonic Automotive reported mixed third-quarter results, with record gross profit and adjusted EBITDA in its EchoPark segment, despite a 38% year-over-year decline in adjusted EPS. The company's franchise business performance varied, with potential challenges indicated by the initial fiscal year 2025 retail gross profit per unit guidance. However, Sonic Auto remains optimistic about the potential for growth, particularly in the EchoPark and Powersports segments. The company also announced a 17% increase in its quarterly cash dividend to $0.35 per share. These recent developments underscore Sonic Auto's resilience in navigating market fluctuations and its focus on long-term growth.
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