Sonic Hits Estimates in Solid Quarter
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 GAAP earnings per share increased significantly.
Margins increased across the board.
Revenue details
Sonic notched revenue of $126.0 million. The 14 analysts polled by S&P Capital IQ predicted revenue of $126.2 million on the same basis. GAAP reported sales were 1.8% lower than the prior-year quarter's $128.3 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS details
EPS came in at $0.11. The 16 earnings estimates compiled by S&P Capital IQ forecast $0.11 per share. GAAP EPS of $0.11 for Q1 were 22% higher than the prior-year quarter's $0.09 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
Margin details
For the quarter, gross margin was 52.3%, 130 basis points better than the prior-year quarter. Operating margin was 13.7%, 60 basis points better than the prior-year quarter. Net margin was 4.9%, 60 basis points better than the prior-year quarter.
Looking ahead
Next quarter's average estimate for revenue is $113.1 million. On the bottom line, the average EPS estimate is $0.05.
Next year's average estimate for revenue is $543.8 million. The average EPS estimate is $0.69.
Investor sentiment
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 370 members out of 419 rating the stock outperform, and 49 members rating it underperform. Among 120 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 104 give Sonic a green thumbs-up, and 16 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 $11.11.
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The article Sonic Hits Estimates in Solid Quarter 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. TMFDisclosureHere
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