Zacks: Brokerages Anticipate Sonic Corp. (SONC) Will Post Quarterly Sales of $106.72 Million
Brokerages expect Sonic Corp. (NASDAQ:SONC) to post $106.72 million in sales for the current fiscal quarter, according to Zacks Investment Research. Five analysts have provided estimates for Sonic Corp.’s earnings, with the highest sales estimate coming in at $107.20 million and the lowest estimate coming in at $106.00 million. Sonic Corp. posted sales of $129.55 million during the same quarter last year, which suggests a negative year-over-year growth rate of 17.6%. The company is scheduled to announce its next earnings report on Wednesday, January 3rd.
According to Zacks, analysts expect that Sonic Corp. will report full year sales of $106.72 million for the current financial year, with estimates ranging from $441.15 million to $457.80 million. For the next financial year, analysts expect that the business will report sales of $461.62 million per share, with estimates ranging from $440.36 million to $479.60 million. Zacks Investment Research’s sales averages are a mean average based on a survey of sell-side analysts that follow Sonic Corp..
Sonic Corp. (NASDAQ:SONC) last announced its quarterly earnings results on Monday, October 16th. The restaurant operator reported $0.45 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.43 by $0.02. Sonic Corp. had a negative return on equity of 33.92% and a net margin of 13.34%. The company had revenue of $123.60 million during the quarter, compared to the consensus estimate of $126.01 million. During the same period in the prior year, the company earned $0.45 earnings per share. The company’s revenue for the quarter was down 23.8% compared to the same quarter last year.
SONC has been the topic of a number of recent analyst reports. BidaskClub downgraded Sonic Corp. from a “hold” rating to a “sell” rating in a research note on Sunday, July 16th. Zacks Investment Research downgraded Sonic Corp. from a “hold” rating to a “sell” rating in a research note on Tuesday, July 18th. Piper Jaffray Companies reissued a “buy” rating and issued a $32.00 price objective on shares of Sonic Corp. in a research note on Wednesday, July 26th. Jefferies Group LLC reissued a “hold” rating and issued a $26.00 price objective on shares of Sonic Corp. in a research note on Thursday, July 27th. Finally, Bank of America Corporation reissued a “buy” rating and issued a $30.00 price objective on shares of Sonic Corp. in a research note on Monday, August 14th. Three analysts have rated the stock with a sell rating, eight have given a hold rating and five have assigned a buy rating to the stock. Sonic Corp. has a consensus rating of “Hold” and an average price target of $27.73.
In other Sonic Corp. news, Director Federico F. Pena sold 1,161 shares of the business’s stock in a transaction that occurred on Monday, October 23rd. The stock was sold at an average price of $25.20, for a total transaction of $29,257.20. Following the completion of the sale, the director now directly owns 1,187,659 shares of the company’s stock, valued at approximately $29,929,006.80. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, Director Frank E. Richardson III sold 50,000 shares of the business’s stock in a transaction that occurred on Thursday, October 26th. The stock was sold at an average price of $25.59, for a total value of $1,279,500.00. Following the sale, the director now directly owns 1,187,659 shares of the company’s stock, valued at $30,392,193.81. The disclosure for this sale can be found here. Insiders own 6.24% of the company’s stock.
A number of institutional investors and hedge funds have recently modified their holdings of the business. Victory Capital Management Inc. increased its holdings in Sonic Corp. by 73.7% during the 3rd quarter. Victory Capital Management Inc. now owns 32,063 shares of the restaurant operator’s stock worth $816,000 after purchasing an additional 13,599 shares in the last quarter. Crossmark Global Holdings Inc. bought a new stake in Sonic Corp. during the 3rd quarter worth approximately $239,000. Cardinal Capital Management increased its holdings in Sonic Corp. by 23.2% during the 3rd quarter. Cardinal Capital Management now owns 24,741 shares of the restaurant operator’s stock worth $629,000 after purchasing an additional 4,658 shares in the last quarter. First Trust Advisors LP bought a new stake in Sonic Corp. during the 3rd quarter worth approximately $644,000. Finally, Reinhart Partners Inc. increased its holdings in Sonic Corp. by 60.1% during the 3rd quarter. Reinhart Partners Inc. now owns 116,860 shares of the restaurant operator’s stock worth $2,974,000 after purchasing an additional 43,850 shares in the last quarter.
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Shares of Sonic Corp. (NASDAQ SONC) opened at 25.77 on Monday. Sonic Corp. has a one year low of $22.11 and a one year high of $30.05. The firm has a 50 day moving average price of $24.71 and a 200 day moving average price of $25.85. The company has a market capitalization of $1.06 billion, a P/E ratio of 17.77 and a beta of 1.76.
The company also recently announced a quarterly dividend, which will be paid on Friday, November 17th. Investors of record on Wednesday, November 8th will be given a $0.16 dividend. This represents a $0.64 dividend on an annualized basis and a yield of 2.48%. This is a positive change from Sonic Corp.’s previous quarterly dividend of $0.14. The ex-dividend date is Tuesday, November 7th. Sonic Corp.’s payout ratio is presently 38.10%.
Sonic Corp. announced that its Board of Directors has approved a share repurchase program on Wednesday, August 9th that authorizes the company to buyback $160.00 million in shares. This buyback authorization authorizes the restaurant operator to purchase up to 16.2% of its shares through open market purchases. Shares buyback programs are often a sign that the company’s board believes its stock is undervalued.
About Sonic Corp.
Sonic Corp. operates and franchises the chain of drive-thru restaurants (Sonic Drive-Ins) in the United States. As of August 31, 2016, 3,557 Sonic Drive-Ins were in operation from coast to coast in 45 states, consisting of 345 Company drive-thrus and 3,212 franchise drive-thrus. As of August 31, 2016, its restaurant design and construction consisted of a kitchen housed in a one-story building, which was approximately 1,500 square feet, flanked by canopy-covered rows of 16 to 24 parking spaces, with each space having its own payment terminal, intercom speaker system and menu board.
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