Ruby Tuesday Misses on Both Revenue and Earnings

Ruby Tuesday (NYSE: RT  ) reported earnings on July 24. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended June 4 (Q4), Ruby Tuesday missed estimates on revenues and missed estimates on earnings per share.

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

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

Revenue details
Ruby Tuesday notched revenue of $316.1 million. The six analysts polled by S&P Capital IQ expected revenue of $331.0 million on the same basis. GAAP reported sales were 13% lower than the prior-year quarter's $363.2 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 $0.12. The six earnings estimates compiled by S&P Capital IQ forecast $0.19 per share. Non-GAAP EPS of $0.12 for Q4 were 43% lower than the prior-year quarter's $0.21 per share. GAAP EPS were -$0.49 for Q4 compared to -$0.09 per share for the prior-year quarter.

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 18.1%, 100 basis points worse than the prior-year quarter. Operating margin was 4.9%, 170 basis points better than the prior-year quarter. Net margin was -9.2%, 760 basis points worse than the prior-year quarter. (Margins calculated in GAAP terms.)

Looking ahead
Next quarter's average estimate for revenue is $323.0 million. On the bottom line, the average EPS estimate is $0.08.

Next year's average estimate for revenue is $1.27 billion. The average EPS estimate is $0.34.

Investor sentiment
The stock has a one-star rating (out of five) at Motley Fool CAPS, with 119 members out of 243 rating the stock outperform, and 124 members rating it underperform. Among 74 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 44 give Ruby Tuesday a green thumbs-up, and 30 give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Ruby Tuesday is hold, with an average price target of $8.38.

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