Sonic (Nasdaq: SONC) is expected to report Q1 earnings on Jan. 3. Here's what Wall Street wants to see:

The 10-second takeaway
Comparing the upcoming quarter to the prior-year quarter, average analyst estimates predict Sonic's revenues will drop -1.6% and EPS will increase 22.2%.

The average estimate for revenue is $126.3 million. On the bottom line, the average EPS estimate is $0.11.

Revenue details
Last quarter, Sonic notched revenue of $150.9 million. 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 details
Last quarter, non-GAAP EPS came in at $0.25. GAAP EPS of $0.24 for Q4 were 20% 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.

Recent performance
For the preceding quarter, gross margin was 54.3%, 230 basis points better than the prior-year quarter. Operating margin was 20.7%, 230 basis points better than the prior-year quarter. Net margin was 9.6%, 150 basis points better than the prior-year quarter.

Looking ahead

The full year's average estimate for revenue is $546.3 million. The average EPS estimate is $0.69.

Investor sentiment
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 371 members out of 420 rating the stock outperform, and 49 members rating it underperform. Among 121 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 104 give Sonic a green thumbs-up, and 17 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.

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