The 10-second takeaway
For the quarter ended Dec. 4 (Q2), Ruby Tuesday met expectations on revenues and missed expectations on earnings per share.
Compared to the prior-year quarter, revenue contracted slightly and GAAP loss per share expanded.
Gross margins grew, operating margins contracted, net margins contracted.
Ruby Tuesday logged revenue of $304.2 million. The seven analysts polled by S&P Capital IQ predicted a top line of $305.0 million on the same basis. GAAP reported sales were 1.0% lower than the prior-year quarter's $307.5 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 -$0.07. The seven earnings estimates compiled by S&P Capital IQ anticipated -$0.06 per share. GAAP EPS were -$0.24 for Q2 against -$0.03 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 16.5%, 260 basis points better than the prior-year quarter. Operating margin was -1.3%, 220 basis points worse than the prior-year quarter. Net margin was -5.0%, 430 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $323.6 million. On the bottom line, the average EPS estimate is $0.14.
Next year's average estimate for revenue is $1.31 billion. The average EPS estimate is $0.29.
The stock has a one-star rating (out of five) at Motley Fool CAPS, with 122 members out of 242 rating the stock outperform, and 120 members rating it underperform. Among 80 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 48 give Ruby Tuesday a green thumbs-up, and 32 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 $7.50.
Does Ruby Tuesday have what it takes to execute internationally? Take a look at some American restaurant concepts that are generating profits in all over the globe in, "3 American Companies Set to Dominate the World." It's free for a limited time. Click here for instant access to this free report.
- Add Ruby Tuesday to My Watchlist.
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. The Motley Fool has no position in any of the stocks mentioned. 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.