Sonic Automotive (NYSE: SAH) reported Q4 EPS of $0.84, $0.03 better than the analyst estimate of $0.81. Revenue for the quarter came in at $2.7 billion versus the consensus estimate of $2.6 billion.

• Adjusted net income from continuing operations for the fourth quarter of 2017 was $36.6 million, or $0.84 per diluted share.
• All-time record revenue and gross profit in the fourth quarter of 2017 of $2.7 billion and $384.1 million, respectively
• All-time record revenue and gross profit in the full year of 2017 of $9.9 billion and $1.5 billion, respectively
• Record annual retail unit sales in 2017 of 257,217 units
• Record F&I gross profit per retail unit of $1,473 and $1,411 for the fourth quarter and the full year of 2017, respectively
• Benefit of $28.4 million related to the 2017 Tax Cuts and Jobs Act
• 20% increase in the quarterly dividend to $0.06 per share

2018 Outlook

B. Scott Smith also noted, "We anticipate new vehicle industry volume to be between 16.75 million and 17.0 million units. We project diluted earnings per share from continuing operations for 2018 to be between $2.21 and $2.45 per share. This range includes the effect of projected results and expansion of our Pre-Owned Stores Segment, which includes EchoPark. We are projecting a loss related to our Pre-Owned Stores Segment for 2018 of between $0.08 and $0.12 per diluted share. Prior to the change in the federal income tax rate, we expected our annual effective income tax rate to range between 38% and 40% each year. Going forward, and included in our 2018 estimate, we expect our annual effective income tax rate to range between 26% and 28% each year. We will have additional comments on our 2018 outlook in our earnings call later today."

GUIDANCE:

Sonic Automotive sees FY2018 EPS of $2.21-$2.45, versus the consensus of $2.15.

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