Sonic (NYSE: SAH) shares fall 11 pct after earnings miss

Shawshank, VA 4/23/12 (StreetBeat) -- Sonic Automotive Inc (NYSE: SAH), one of the largest U.S. auto dealer groups, reported a slightly lower-than-expected quarterly profit on Monday, sending its shares down more than 11 percent.

First-quarter earnings from continuing operations were $19.5 million, or 33 cents per share, up 24 percent from $15.7 million, or 27 cents per share, a year earlier. This missed analysts' expectations of 34 cents per share, according to Thomson Reuters I/B/E/S.

Revenue from new vehicle sales rose 12 percent.

While Sonic's shares plunged on the New York Stock Exchange, its counterparts among major U.S. auto dealer groups showed losses that were not nearly as sharp as Sonic's.

No. 1 U.S. auto dealer group AutoNation Inc's shares were down 1 percent, No. 2 Penske Automotive shares fell 3 percent, and No. 3 Group 1 Automotive shares were also down 3 percent.

The wider S&P Index was off 1.3 percent.

First-quarter total revenue for the Charlotte, North Carolina-based dealer group rose 9 percent to $1.98 billion, about in line with the analysts' average estimate of $2 billion.

For the quarter, net income rose 37 percent to $20.5 million, including $1.03 million in income from discontinued operations.

Sonic confirmed its forecast of 2012 earnings from continuing operations of between $1.55 and $1.65 per share.

The company also announced a quarterly dividend of 2.5 cents per share in cash for stockholders as of June 15.

Sonic is heavily reliant on Honda, and rival Group 1 Automotive Inc depends on Toyota. In the first quarter, Toyota's U.S. new-vehicle sales rose 12 percent, and Honda's rose only 4 percent.

Sonic's shares fell $1.98, or 11.04 percent, to $15.95 in morning New York Stock Exchange trading.

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