Sonic Co. (SONC) Expected to Post Quarterly Sales of $94.44 Million

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

According to Zacks, 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 expect that the business will post 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 research analysts that follow Sonic.

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

Several research firms have recently commented on SONC. BidaskClub raised shares of Sonic from a “strong sell” rating to a “sell” rating in a report on Thursday, February 8th. Barclays lifted their price target on shares of Sonic from $27.00 to $28.00 and gave the company an “underweight” rating in a report on Tuesday, January 16th. Zacks Investment Research raised 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 reaffirmed a “hold” rating and issued a $29.00 price target on shares of Sonic in a report on Tuesday, January 9th. Finally, Canaccord Genuity reaffirmed a “hold” rating and issued a $30.00 price target on shares of Sonic in a report on Friday, January 5th. Two research analysts have rated the stock with a sell rating, seven have given a hold rating and six have given a buy rating to the company’s stock. The company has a consensus rating of “Hold” and a consensus target price of $29.64.

In other Sonic news, Director Federico F. Pena sold 9,686 shares of the business’s stock in a transaction dated Monday, February 12th. The shares were sold at an average price of $24.61, for a total transaction of $238,372.46. The transaction was disclosed in a filing with the SEC, which is available through the SEC website. Also, Director Frank E. Richardson III sold 50,000 shares of the business’s stock in a transaction dated Wednesday, December 13th. The stock was sold at an average price of $28.40, for a total transaction of $1,420,000.00. The disclosure for this sale can be found here. Insiders have sold a total of 130,687 shares of company stock valued at $3,586,167 over the last three months. 8.28% of the stock is currently owned by company insiders.

Several hedge funds have recently added to or reduced their stakes in the business. Renaissance Technologies LLC bought a new stake in shares of Sonic during the 4th quarter worth about $5,454,000. Amundi Pioneer Asset Management Inc. bought a new stake in shares of Sonic during the 4th quarter worth about $3,142,000. Commerce Bank bought a new stake in shares of Sonic during the 4th quarter worth about $275,000. Stormborn Capital Management LLC bought a new stake in shares of Sonic during the 4th quarter worth about $5,496,000. Finally, Quadrature Capital Ltd bought a new stake in shares of Sonic during the 4th quarter worth about $907,000.

Sonic (NASDAQ:SONC) opened at $24.08 on Wednesday. Sonic has a fifty-two week low of $22.11 and a fifty-two week high of $30.05. The company has a debt-to-equity ratio of -2.87, a current ratio of 1.81 and a quick ratio of 1.81. The company has a market cap of $942.22, a PE ratio of 18.42, a PEG ratio of 1.09 and a beta of 1.59.

The company also recently announced a quarterly dividend, which will be paid on Friday, February 16th. Shareholders of record on Wednesday, February 7th will be paid a dividend of $0.16 per share. This represents a $0.64 dividend on an annualized basis and a yield of 2.66%. The ex-dividend date is Tuesday, February 6th. Sonic’s payout ratio is 43.24%.

Sonic declared that its board has initiated a share repurchase plan on Thursday, October 26th that permits the company to buyback $160.00 million in shares. This buyback authorization permits the restaurant operator to purchase up to 14.9% of its shares through open market purchases. Shares buyback plans are generally a sign that the company’s leadership believes its stock is undervalued.

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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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