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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