Brokerages Expect Sonic Corp. (SONC) Will Post Quarterly Sales of $126.26 Million
Analysts forecast that Sonic Corp. (NASDAQ:SONC) will post sales of $126.26 million for the current quarter, Zacks reports. Five analysts have issued estimates for Sonic Corp.’s earnings. The highest sales estimate is $127.80 million and the lowest is $124.59 million. Sonic Corp. posted sales of $162.12 million during the same quarter last year, which suggests a negative year-over-year growth rate of 22.1%. The business is expected to report its next quarterly earnings report on Monday, October 23rd.
According to Zacks, analysts expect that Sonic Corp. will report full-year sales of $126.26 million for the current financial year, with estimates ranging from $478.29 million to $481.50 million. For the next financial year, analysts anticipate that the business will post sales of $459.66 million per share, with estimates ranging from $441.48 million to $475.28 million. Zacks Investment Research’s sales averages are a mean average based on a survey of sell-side analysts that cover Sonic Corp..
Sonic Corp. (NASDAQ:SONC) last released its quarterly earnings data on Thursday, June 22nd. The restaurant operator reported $0.43 earnings per share for the quarter, topping the consensus estimate of $0.41 by $0.02. The firm had revenue of $124 million for the quarter, compared to analyst estimates of $122.58 million. Sonic Corp. had a net margin of 13.23% and a negative return on equity of 44.21%. Sonic Corp.’s quarterly revenue was down 24.9% on a year-over-year basis. During the same quarter in the prior year, the business earned $0.43 earnings per share.
Several analysts have recently weighed in on SONC shares. Bank of America Corporation reiterated an “underperform” rating and set a $28.00 target price (down from $30.00) on shares of Sonic Corp. in a research report on Sunday, June 25th. Zacks Investment Research lowered shares of Sonic Corp. from a “hold” rating to a “sell” rating in a research report on Tuesday, July 18th. BidaskClub lowered shares of Sonic Corp. from a “hold” rating to a “sell” rating in a research report on Sunday, July 16th. Jefferies Group LLC reiterated a “hold” rating and set a $26.00 target price on shares of Sonic Corp. in a research report on Thursday, July 27th. Finally, Wells Fargo & Company started coverage on shares of Sonic Corp. in a research report on Tuesday, May 23rd. They set a “market perform” rating and a $30.00 target price on the stock. Three research analysts have rated the stock with a sell rating, ten have assigned a hold rating and four have given a buy rating to the company’s stock. Sonic Corp. currently has an average rating of “Hold” and a consensus price target of $27.75.
Shares of Sonic Corp. (NASDAQ:SONC) opened at 23.76 on Wednesday. The company’s 50-day moving average is $25.05 and its 200 day moving average is $26.09. Sonic Corp. has a 1-year low of $21.12 and a 1-year high of $30.05. The firm has a market cap of $993.38 million, a price-to-earnings ratio of 15.84 and a beta of 1.74.
Sonic Corp. declared that its Board of Directors has authorized a share buyback program on Wednesday, August 9th that authorizes the company to repurchase $160.00 million in shares. This repurchase authorization authorizes the restaurant operator to repurchase up to 16.2% of its shares through open market purchases. Shares repurchase programs are usually an indication that the company’s management believes its stock is undervalued.
The business also recently announced a quarterly dividend, which will be paid on Friday, August 18th. Shareholders of record on Wednesday, August 9th will be paid a $0.14 dividend. This represents a $0.56 dividend on an annualized basis and a dividend yield of 2.36%. The ex-dividend date is Monday, August 7th. Sonic Corp.’s dividend payout ratio is presently 37.33%.
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In related news, Director Steven A. Davis bought 2,000 shares of the company’s stock in a transaction on Friday, July 21st. The stock was bought at an average cost of $24.62 per share, with a total value of $49,240.00. The acquisition was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. Insiders own 6.24% of the company’s stock.
Several institutional investors have recently made changes to their positions in the company. Teachers Advisors LLC increased its position in shares of Sonic Corp. by 25.7% in the fourth quarter. Teachers Advisors LLC now owns 121,742 shares of the restaurant operator’s stock worth $3,227,000 after buying an additional 24,896 shares in the last quarter. Cardinal Capital Management increased its position in shares of Sonic Corp. by 1.6% in the first quarter. Cardinal Capital Management now owns 17,448 shares of the restaurant operator’s stock worth $442,000 after buying an additional 274 shares in the last quarter. Geneva Advisors LLC increased its position in shares of Sonic Corp. by 6.8% in the first quarter. Geneva Advisors LLC now owns 40,392 shares of the restaurant operator’s stock worth $1,024,000 after buying an additional 2,580 shares in the last quarter. OLD National Bancorp IN bought a new position in shares of Sonic Corp. during the first quarter worth $380,000. Finally, LSV Asset Management bought a new position in shares of Sonic Corp. during the first quarter worth $218,000. 97.48% of the stock is owned by institutional investors.
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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