Sonic Beats up on Analysts yet Again
Sonic (NAS: SONC) reported earnings on June 20. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended May 31 (Q3), Sonic met expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue contracted slightly and GAAP earnings per share expanded.
Margins grew across the board.
Sonic notched revenue of $149.4 million. The 12 analysts polled by S&P Capital IQ looked for revenue of $149.0 million on the same basis. GAAP reported sales were 1.8% lower than the prior-year quarter's $152.1 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.24. The 13 earnings estimates compiled by S&P Capital IQ forecast $0.22 per share. GAAP EPS were $0.24 for Q3 compared to -$0.08 per share for the prior-year quarter.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 53.7%, 110 basis points better than the prior-year quarter. Operating margin was 20.7%, 160 basis points better than the prior-year quarter. Net margin was 9.6%, 1,270 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $149.0 million. On the bottom line, the average EPS estimate is $0.24.
Next year's average estimate for revenue is $541.6 million. The average EPS estimate is $0.59.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 369 members out of 420 rating the stock outperform, and 51 members rating it underperform. Among 117 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 100 give Sonic a green thumbs-up, and 17 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Sonic is outperform, with an average price target of $9.09.
Over the decades, small-cap stocks, like Sonic have provided market-beating returns, provided they're value priced and have solid businesses. Read about a pair of companies with a lock on their markets in "Too Small to Fail: Two Small Caps the Government Won't Let Go Broke." Click here for instant access to this free report.
- Add Sonic to My Watchlist.
The article Sonic Beats up on Analysts yet Again originally appeared on Fool.com.Seth Jaysonhad 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.
Copyright © 1995 - 2012 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.