Ruby Tuesday (NYS: RT) reported earnings on July 25. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended June 5 (Q4), Ruby Tuesday beat slightly on revenues and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue grew slightly and GAAP earnings per share contracted to a loss.
Gross margins expanded, operating margins contracted, net margins dropped.
Ruby Tuesday recorded revenue of $363.2 million. The six analysts polled by S&P Capital IQ predicted a top line of $358.8 million on the same basis. GAAP reported sales were 2.9% higher than the prior-year quarter's $353.0 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 $0.21. The six earnings estimates compiled by S&P Capital IQ forecast $0.25 per share. GAAP EPS were -$0.09 for Q4 against $0.21 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 19.2%, 120 basis points better than the prior-year quarter. Operating margin was 3.3%, 330 basis points worse than the prior-year quarter. Net margin was -1.6%, 550 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $323.9 million. On the bottom line, the average EPS estimate is $0.06.
Next year's average estimate for revenue is $1.29 billion. The average EPS estimate is $0.44.
The stock has a one-star rating (out of five) at Motley Fool CAPS, with 127 members out of 246 rating the stock outperform, and 119 members rating it underperform. Among 71 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 38 give Ruby Tuesday a green thumbs-up, and 33 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Ruby Tuesday is outperform, with an average price target of $8.38.
Over the decades, small-cap stocks, like Ruby Tuesday 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 Ruby Tuesday to My Watchlist.
The article Ruby Tuesday Goes Negative originally appeared on Fool.com.
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.
Copyright © 1995 - 2012 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.