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DETROIT, July 29 (Reuters) - Auto dealer group Sonic Automotive Inc. on Tuesday reported weaker quarterly earnings as new dealerships failed to offset a drop in sales of used vehicle sales industrywide.
The Charlotte, North Carolina-based company also cut the top end of its earnings outlook for the full year.
Sonic said second-quarter net earnings fell to $28.5 million, or 68 cents per share, from $31.5 million, or 71 cents, in the year-ago quarter.
Analysts expected Sonic to earn between 61 cents and 77 cents per share, with an average of 69 cents, according to a survey of five analysts by Thomson First Call.
Total revenues rose to $1.94 billion from $1.84 billion in the previous second quarter.
For dealerships open at least a year, revenues fell 1 percent in the quarter, as a drop in used vehicle sales countered a rise in new car and truck sales.
Sonic said it now expects earnings per share this year of between $2.45 and $2.60, excluding the impact of accounting changes. In late April, the company had said it expected earnings per share of $2.45 to $2.70, excluding the accounting changes.
Wall Street analysts have expected earning of $2.50 to $2.65 per share, with an average estimate of $2.58 per share, according to a survey of five analysts by Thomson First Call.
Sonic shares closed on Monday at $26.95 on the New York Stock Exchange. Since the beginning of the year, Sonic shares have gained about 81 percent, outperforming a gain of 13 percent for the S&P 500 index.