The 10-second takeaway
For the quarter ended Feb. 28 (Q3), Ruby Tuesday missed estimates on revenue and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue improved slightly and GAAP earnings per share contracted significantly.
Gross margin increased, operating margin contracted, and net margin contracted.
Ruby Tuesday notched revenue of $324.8 million. The six analysts polled by S&P Capital IQ hoped for sales of $337.8 million on the same basis. GAAP reported sales were 1.8% higher than the prior-year quarter's $319.1 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
Non-GAAP EPS came in at $0.18. The five earnings estimates compiled by S&P Capital IQ forecast $0.16 per share on the same basis. GAAP EPS of $0.07 for Q3 were 72% lower than the prior-year quarter's $0.25 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 17.4%, 40 basis points better than the prior-year quarter. Operating margin was 5.4%, 100 basis points worse than the prior-year quarter. Net margin was 1.4%, 360 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $361.5 million. On the bottom line, the average EPS estimate is $0.24.
Next year's average estimate for revenue is $1.32 billion. The average EPS estimate is $0.45.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 130 members out of 247 rating the stock outperform, and 117 members rating it underperform. Out of 70 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 39 give Ruby Tuesday a green thumbs-up, and 31 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 $10.17.
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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. 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.