Zacks: Brokerages Anticipate Sonic Co. (SONC) Will Announce Quarterly Sales of $94.44 Million

Analysts forecast that Sonic Co. (NASDAQ:SONC) will announce sales of $94.44 million for the current fiscal quarter, Zacks reports. Five analysts have issued estimates for Sonic’s earnings, with the highest sales estimate coming in at $98.30 million and the lowest estimate coming in at $90.99 million. Sonic posted sales of $100.16 million during the same quarter last year, which would indicate a negative year over year growth rate of 5.7%. The business is expected to announce its next quarterly earnings results on Tuesday, March 27th.

On average, analysts expect that Sonic will report full-year sales of $94.44 million for the current financial year, with estimates ranging from $439.38 million to $477.30 million. For the next year, analysts anticipate that the firm will report sales of $456.16 million per share, with estimates ranging from $447.17 million to $466.60 million. Zacks’ sales averages are a mean average based on a survey of analysts that cover Sonic.

Sonic (NASDAQ:SONC) last posted its quarterly earnings results on Thursday, January 4th. The restaurant operator reported $0.30 EPS for the quarter, topping analysts’ consensus estimates of $0.25 by $0.05. The business had revenue of $105.40 million during the quarter, compared to analysts’ expectations of $106.86 million. Sonic had a net margin of 13.68% and a negative return on equity of 28.95%. The business’s quarterly revenue was down 18.7% on a year-over-year basis. During the same period last year, the company posted $0.24 earnings per share.

A number of equities research analysts have commented on the stock. Barclays raised their price target on shares of Sonic from $27.00 to $28.00 and gave the stock an “underweight” rating in a report on Tuesday, January 16th. BidaskClub cut shares of Sonic from a “hold” rating to a “sell” rating in a report on Saturday, January 13th. Zacks Investment Research upgraded shares of Sonic from a “hold” rating to a “buy” rating and set a $31.00 price target for the company in a report on Wednesday, January 10th. Cowen restated a “hold” rating and issued a $29.00 price target on shares of Sonic in a report on Tuesday, January 9th. Finally, Canaccord Genuity restated a “hold” rating and issued a $30.00 price target on shares of Sonic in a report on Friday, January 5th. Two equities research analysts have rated the stock with a sell rating, seven have issued a hold rating and six have issued a buy rating to the company’s stock. The stock currently has an average rating of “Hold” and a consensus price target of $29.64.

In other Sonic news, Director Frank E. Richardson III sold 50,000 shares of the firm’s stock in a transaction on Friday, December 8th. The shares were sold at an average price of $27.62, for a total value of $1,381,000.00. Following the transaction, the director now directly owns 1,149,890 shares of the company’s stock, valued at $31,759,961.80. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this link. Also, VP Carolyn C. Cummins sold 2,347 shares of the firm’s stock in a transaction on Thursday, November 30th. The shares were sold at an average price of $25.43, for a total transaction of $59,684.21. The disclosure for this sale can be found here. Insiders sold 121,001 shares of company stock worth $3,347,794 over the last ninety days. Insiders own 6.24% of the company’s stock.

Institutional investors have recently added to or reduced their stakes in the business. Wells Fargo & Company MN lifted its stake in shares of Sonic by 28.7% in the second quarter. Wells Fargo & Company MN now owns 79,892 shares of the restaurant operator’s stock valued at $2,116,000 after buying an additional 17,822 shares in the last quarter. Nordea Investment Management AB lifted its stake in shares of Sonic by 27.0% in the second quarter. Nordea Investment Management AB now owns 67,409 shares of the restaurant operator’s stock valued at $1,786,000 after buying an additional 14,315 shares in the last quarter. Atlanta Capital Management Co. L L C bought a new position in shares of Sonic in the third quarter valued at $7,681,000. SG Americas Securities LLC lifted its stake in shares of Sonic by 117.1% in the third quarter. SG Americas Securities LLC now owns 11,418 shares of the restaurant operator’s stock valued at $291,000 after buying an additional 6,159 shares in the last quarter. Finally, Vanguard Group Inc. lifted its stake in shares of Sonic by 1.2% in the second quarter. Vanguard Group Inc. now owns 3,596,500 shares of the restaurant operator’s stock valued at $95,272,000 after buying an additional 43,146 shares in the last quarter.

Shares of Sonic (SONC) opened at $26.13 on Friday. The company has a quick ratio of 1.81, a current ratio of 1.81 and a debt-to-equity ratio of -2.87. The company has a market cap of $1,026.06, a price-to-earnings ratio of 17.66, a price-to-earnings-growth ratio of 1.19 and a beta of 1.74. Sonic has a twelve month low of $22.11 and a twelve month high of $30.05.

Sonic declared that its board has authorized a share repurchase plan on Thursday, October 26th that allows the company to repurchase $160.00 million in outstanding shares. This repurchase authorization allows the restaurant operator to repurchase up to 14.9% of its shares through open market purchases. Shares repurchase plans are typically a sign that the company’s management believes its shares are undervalued.

The firm also recently disclosed a quarterly dividend, which will be paid on Friday, February 16th. Shareholders of record on Wednesday, February 7th will be paid a $0.16 dividend. This represents a $0.64 dividend on an annualized basis and a dividend yield of 2.45%. The ex-dividend date of this dividend is Tuesday, February 6th. Sonic’s dividend payout ratio (DPR) is 43.24%.

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Sonic Company Profile

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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Earnings History and Estimates for Sonic (NASDAQ:SONC)

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