Similar to what Penske Automotive offered, Sonic Automotive recently provided an update on the impact Hurricanes Harvey and Irma likely had on its operations.
The details came as Sonic prepares to release its complete third quarter financial results on Oct. 24.
Sonic reiterated that it has 19 franchise stores and five collision repair centers in the greater Houston market, and the group acknowledged Harvey affected operations at all of Sonic’s Houston market locations during the third quarter. Approximately 20 percent of Sonic’s consolidated revenues for the first six months of fiscal 2017 were attributable to the Houston market locations.
Company officials explained that Hurricane Irma affected Sonic’s operations in Florida, Alabama and Georgia in “varying degrees.” The group noted 24 stores in these regions were impacted by Irma, with 11 Florida locations being impacted the most.
As of and since Sept. 15, Sonic insisted all of the locations affected by Hurricanes Harvey and Irma were operating, with some locations' operations being limited due to damaged facilities.
The group then acknowledged the effect of these events has had a negative impact on third quarter fiscal 2017 results.
As of Oct. 11, Sonic now expects to report GAAP earnings per share from continuing operations for Q4 ranging between $0.44 and $0.46 and adjusted earnings per share from continuing operations for Q3 ranging between $0.39 and $0.41.
Sonic estimated the negative impact experienced Q3 to be offset by a lift of increased automotive retail sales and service activity in the fourth quarter. Accordingly, Sonic expects fiscal 2017 GAAP earnings per share from continuing operations to be between $1.55 and $1.65 and expects fiscal 2017 adjusted earnings per share from continuing operations to be between $1.85 and $1.95.