The 10-second takeaway
For the quarter ended Nov. 29 (Q2), Ruby Tuesday missed on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue expanded, and earnings per share shrank to a loss.
Margins shrank across the board.
Ruby Tuesday chalked up revenue of $307 million. The eight analysts polled by S&P Capital IQ anticipated a top line of $314 million. Sales were 5.9% higher than the prior-year quarter's $290 million
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions.
EPS came in at -$0.03. The seven earnings estimates compiled by S&P Capital IQ predicted -$0.05 per share. GAAP EPS were -$0.03 for Q2 against $0.07 per share for the prior-year quarter.
Source: S&P Capital IQ. Quarterly periods. Figures may be non-GAAP to maintain comparability with estimates.
For the quarter, gross margin was 13.9%, 160 basis points worse than the prior-year quarter. Operating margin was 0.9%, 190 basis points worse than the prior-year quarter. Net margin was -0.7%, 230 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 $333 million. On the bottom line, the average EPS estimate is $0.16.
Next year's average estimate for revenue is $1.4 billion. The average EPS estimate is $.56.
The stock has a one-star rating (out of five) at Motley Fool CAPS, with 126 members out of 244 rating the stock outperform, and 118 members rating it underperform. Among 76 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 38 give Ruby Tuesday a green thumbs-up, and 38 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Ruby Tuesday is hold, with an average price target of $10.42.
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