Auto retailer Sonic Automotive Inc. saw its stock price rise by more than 7 percent on Thursday after it reported first-quarter earnings that beat analyst expectations.

The Fortune 500 company reported adjusted earnings per share of 39 cents, or $42.2 million, compared to 26 cents per share for the first quarter of 2018. Analysts were expecting earnings of 22 cents.

Revenue of $2.39 billion came in slightly below analyst estimates of $2.43 billion and were flat from the same quarter a year ago.

Investors were impressed with the results from EchoPark, Sonic Automotive’s used car retail brand. During the first quarter, EchoPark revenues totaled $249.6 million, up 89.8 percent from the same quarter in 2018.

“EchoPark expansion plans can generate annual incremental revenue of $500 million to $1 billion,” said Chief Financial Officer Heath Byrd. “We believe the improved strength of our balance sheet and the positive cash flows from our EchoPark and franchise operations will allow us to fund the expansion of EchoPark internally without the need to access capital from the public markets.”

The company’s stock rose $1.13, or 7.1 percent, to $16.98 in Thursday afternoon trading.

Gross profit for the first quarter of 2019 on a same-store basis improved $8.4 million, or 2.7 percent, from the prior-year quarter.

Over the past year, the company reduced total long-term debt by $139.3 million.

Sonic Automotive operates over 100 dealerships, across 13 states, in 25 major markets. EchoPark operates nine dealerships across Colorado, Texas, and North Carolina.