The 10-second takeaway
For the quarter ended June 5 (Q4), Ruby Tuesday beat slightly on revenues and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue grew slightly and GAAP earnings per share contracted to a loss.
Gross margins expanded, operating margins contracted, net margins dropped.
Ruby Tuesday recorded revenue of $363.2 million. The six analysts polled by S&P Capital IQ predicted a top line of $358.8 million on the same basis. GAAP reported sales were 2.9% higher than the prior-year quarter's $353.0 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.21. The six earnings estimates compiled by S&P Capital IQ forecast $0.25 per share. GAAP EPS were -$0.09 for Q4 against $0.21 per share for the prior-year quarter.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 19.2%, 120 basis points better than the prior-year quarter. Operating margin was 3.3%, 330 basis points worse than the prior-year quarter. Net margin was -1.6%, 550 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $323.9 million. On the bottom line, the average EPS estimate is $0.06.
Next year's average estimate for revenue is $1.29 billion. The average EPS estimate is $0.44.
The stock has a one-star rating (out of five) at Motley Fool CAPS, with 127 members out of 246 rating the stock outperform, and 119 members rating it underperform. Among 71 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 38 give Ruby Tuesday a green thumbs-up, and 33 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 $8.38.
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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.