Please ensure Javascript is enabled for purposes of website accessibility

Golf Clap for Ruby Tuesday

By Seth Jayson - Updated Apr 10, 2017 at 1:52PM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Just the facts, Fool.

Ruby Tuesday (NYSE: RT) reported earnings on April 10. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended March 5 (Q3), Ruby Tuesday met expectations on revenues and met expectations on earnings per share.

Compared to the prior-year quarter, revenue dropped. Non-GAAP earnings per share dropped significantly. GAAP earnings per share dropped significantly.

Gross margins grew, operating margins shrank, net margins dropped.

Revenue details
Ruby Tuesday reported revenue of $307.4 million. The seven analysts polled by S&P Capital IQ foresaw revenue of $311.3 million on the same basis. GAAP reported sales were 5.4% lower than the prior-year quarter's $324.8 million.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
EPS came in at $0.10. The seven earnings estimates compiled by S&P Capital IQ forecast $0.10 per share. Non-GAAP EPS of $0.10 for Q3 were 44% lower than the prior-year quarter's $0.18 per share. GAAP EPS of $0.04 for Q3 were 43% lower than the prior-year quarter's $0.07 per share.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 18.3%, 90 basis points better than the prior-year quarter. Operating margin was 3.7%, 170 basis points worse than the prior-year quarter. Net margin was 0.7%, 70 basis points worse than the prior-year quarter. (Margins calculated in GAAP terms.)

Looking ahead
Next quarter's average estimate for revenue is $324.5 million. On the bottom line, the average EPS estimate is $0.18.

Next year's average estimate for revenue is $1.27 billion. The average EPS estimate is $0.25.

Investor sentiment

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Ruby Tuesday is hold, with an average price target of $7.63.

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.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

Ruby Tuesday, Inc. Stock Quote
Ruby Tuesday, Inc.
RT

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning service.

Stock Advisor Returns
345%
 
S&P 500 Returns
119%

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 05/16/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.