The 10-second takeaway
For the quarter ended Aug. 31 (Q4), Sonic beat slightly on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue was unchanged and GAAP earnings per share increased significantly.
Margins grew across the board.
Sonic logged revenue of $150.9 million. The 12 analysts polled by S&P Capital IQ predicted sales of $149.1 million on the same basis. GAAP reported sales were 0.2% lower than the prior-year quarter's $151.2 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 $0.25. The 15 earnings estimates compiled by S&P Capital IQ forecast $0.24 per share. GAAP EPS of $0.25 for Q4 were 25% higher than the prior-year quarter's $0.20 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 54.3%, 220 basis points better than the prior-year quarter. Operating margin was 20.7%, 220 basis points better than the prior-year quarter. Net margin was 9.6%, 150 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $126.2 million. On the bottom line, the average EPS estimate is $0.11.
Next year's average estimate for revenue is $545.4 million. The average EPS estimate is $0.68.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 369 members out of 419 rating the stock outperform, and 50 members rating it underperform. Among 115 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 100 give Sonic a green thumbs-up, and 15 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Sonic is outperform, with an average price target of $10.50.
- Add Sonic to My Watchlist.