Ruth's Hospitality Group
The 10-second takeaway
For the quarter ended Sep. 23 (Q3), Ruth's Hospitality Group beat slightly on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue grew and GAAP earnings per share expanded.
Gross margins grew, operating margins expanded, net margins shrank.
Ruth's Hospitality Group reported revenue of $84.8 million. The five analysts polled by S&P Capital IQ foresaw sales of $83.6 million on the same basis. GAAP reported sales were 5.7% higher than the prior-year quarter's $80.2 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 $0.02. The five earnings estimates compiled by S&P Capital IQ predicted $0.01 per share. GAAP EPS of $0.02 for Q3 were much higher than the prior-year quarter's $0.00 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 16.2%, 20 basis points better than the prior-year quarter. Operating margin was 2.2%, 10 basis points better than the prior-year quarter. Net margin was 0.9%, 10 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $112.1 million. On the bottom line, the average EPS estimate is $0.15.
Next year's average estimate for revenue is $395.4 million. The average EPS estimate is $0.48.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 210 members out of 240 rating the stock outperform, and 30 members rating it underperform. Among 67 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 60 give Ruth's Hospitality Group a green thumbs-up, and seven 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 $8.50.
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