Sonic Hits Estimates, but Results Lag Last Year's
Sonic (NAS: SONC) reported earnings on Jan. 4. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended Nov. 30 (Q1), Sonic met expectations on revenues and met expectations on earnings per share.
Compared to the prior-year quarter, revenue dropped slightly, and earnings per share shrank significantly.
Margins shrank across the board.
Sonic chalked up revenue of $128 million. The 15 analysts polled by S&P Capital IQ foresaw revenue of $130 million. Sales were 0.7% lower than the prior-year quarter's $129 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions.
EPS came in at $0.09. The 17 earnings estimates compiled by S&P Capital IQ forecast $0.09 per share. GAAP EPS of $0.09 for Q1 were 25% lower than the prior-year quarter's $0.12 per share.
Source: S&P Capital IQ. Quarterly periods. Figures may be non-GAAP to maintain comparability with estimates.
For the quarter, gross margin was 51.0%, 70 basis points worse than the prior-year quarter. Operating margin was 13.1%, 90 basis points worse than the prior-year quarter. Net margin was 4.3%, 130 basis points worse than the prior-year quarter.
Source: S&P Capital IQ. Quarterly periods.
What does the future hold?
Next quarter's average estimate for revenue is $114 million. On the bottom line, the average EPS estimate is $0.02.
Next year's average estimate for revenue is $548 million. The average EPS estimate is $0.53.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 366 members out of 413 rating the stock outperform, and 47 members rating it underperform. Among 129 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 109 give Sonic a green thumbs-up, and 20 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Sonic is hold, with an average price target of $9.29.
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At the time this article was published Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor ofMotley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
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