Ruth's Hospitality Group Beats on Both Top and Bottom Lines

Ruth's Hospitality Group (Nasdaq: RUTH  ) reported earnings on May 3. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended March 31 (Q1), Ruth's Hospitality Group beat slightly on revenues and beat expectations on earnings per share.

Compared to the prior-year quarter, revenue grew. Non-GAAP earnings per share expanded significantly. GAAP earnings per share grew.

Margins expanded across the board.

Revenue details
Ruth's Hospitality Group notched revenue of $107.4 million. The five analysts polled by S&P Capital IQ predicted a top line of $106.0 million on the same basis. GAAP reported sales were 6.3% higher than the prior-year quarter's $101.0 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 $0.25. The six earnings estimates compiled by S&P Capital IQ averaged $0.19 per share. Non-GAAP EPS of $0.25 for Q1 were 67% higher than the prior-year quarter's $0.15 per share. GAAP EPS were $0.22 for Q1 against -$0.89 per share for the prior-year quarter.

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 24.1%, 190 basis points better than the prior-year quarter. Operating margin was 12.2%, 230 basis points better than the prior-year quarter. Net margin was 7.1%, 110 basis points better than the prior-year quarter. (Margins calculated in GAAP terms.)

Looking ahead
Next quarter's average estimate for revenue is $102.2 million. On the bottom line, the average EPS estimate is $0.16.

Next year's average estimate for revenue is $416.4 million. The average EPS estimate is $0.58.

Investor sentiment
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 211 members out of 243 rating the stock outperform, and 32 members rating it underperform. Among 75 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 69 give Ruth's Hospitality Group a green thumbs-up, and six give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Ruth's Hospitality Group is outperform, with an average price target of $8.92.

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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 of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. The Motley Fool has no position in any of the stocks mentioned. 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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