Analyst Note| David Whiston, CFA, CPA, CFE |
Sonic reported record third-quarter results with diluted EPS from continuing operations up 51.9% year over year to $1.96, beating the Refinitiv consensus of $1.92. Sonic announced a third-quarter revenue and EBITDA outlook in an Oct. 13 8-K and actual respective results of $3.1 billion and $150.8 million were within the ranges given in the 8-K. The acquisition of RFJ Auto (see our Sept. 22 note) remains on track for a December close and we see no reason to change our fair value estimate. Earlier this month Sonic amended its credit lines to bring lending and floorplan lending commitments to $2.95 billion, from $1.8 billion, and issued $1.15 billion in aggregate 2029 and 2031 unsecured senior notes at a blended interest rate of 4.73% to help pay for the RFJ deal and repay other debt.