Sonic Co. (SONC) Expected to Post Quarterly Sales of $96.29 Million

Wall Street brokerages forecast that Sonic Co. (NASDAQ:SONC) will announce $96.29 million in sales for the current quarter, Zacks Investment Research reports. Four analysts have made estimates for Sonic’s earnings, with the lowest sales estimate coming in at $94.66 million and the highest estimate coming in at $98.00 million. Sonic posted sales of $105.43 million during the same quarter last year, which suggests a negative year over year growth rate of 8.7%. The firm is expected to report its next earnings results on Thursday, January 3rd.

On average, analysts expect that Sonic will report full-year sales of $403.61 million for the current financial year, with estimates ranging from $398.13 million to $409.50 million. For the next financial year, analysts expect that the business will report sales of $416.99 million, with estimates ranging from $407.20 million to $422.60 million. Zacks’ sales calculations are a mean average based on a survey of sell-side research analysts that follow Sonic.

Sonic (NASDAQ:SONC) last announced its quarterly earnings data on Tuesday, October 16th. The restaurant operator reported $0.52 earnings per share for the quarter, beating the Zacks’ consensus estimate of $0.51 by $0.01. Sonic had a negative return on equity of 21.64% and a net margin of 16.81%. The company had revenue of $111.80 million for the quarter, compared to analyst estimates of $113.22 million. During the same quarter in the previous year, the company earned $0.45 EPS. The firm’s revenue for the quarter was down 9.5% compared to the same quarter last year.

A number of equities research analysts have weighed in on SONC shares. BidaskClub lowered Sonic from a “strong-buy” rating to a “buy” rating in a report on Wednesday, August 1st. Zacks Investment Research raised Sonic from a “hold” rating to a “buy” rating and set a $41.00 price objective on the stock in a report on Thursday, July 19th. Morgan Stanley lifted their price objective on Sonic from $31.00 to $34.00 and gave the company an “equal weight” rating in a report on Thursday, September 13th. Barclays raised Sonic from an “underweight” rating to an “equal weight” rating in a report on Wednesday, September 26th. Finally, Stephens lowered Sonic from an “overweight” rating to an “equal weight” rating and lifted their price objective for the company from $40.00 to $43.50 in a report on Wednesday, September 26th. Fourteen analysts have rated the stock with a hold rating, two have given a buy rating and one has given a strong buy rating to the stock. The company has an average rating of “Hold” and an average target price of $36.08.

In other news, VP Carolyn C. Cummins sold 2,500 shares of the business’s stock in a transaction that occurred on Monday, October 1st. The stock was sold at an average price of $43.31, for a total transaction of $108,275.00. The sale was disclosed in a document filed with the SEC, which is available at the SEC website. Also, insider John H. Budd III sold 89,176 shares of the business’s stock in a transaction that occurred on Monday, October 1st. The stock was sold at an average price of $43.24, for a total value of $3,855,970.24. Following the sale, the insider now directly owns 32,065 shares in the company, valued at approximately $1,386,490.60. The disclosure for this sale can be found here. 6.24% of the stock is owned by insiders.

A number of hedge funds have recently bought and sold shares of the stock. Alpine Associates Management Inc. purchased a new stake in Sonic in the 3rd quarter valued at approximately $26,029,000. Canada Pension Plan Investment Board lifted its stake in Sonic by 146.5% in the 3rd quarter. Canada Pension Plan Investment Board now owns 701,640 shares of the restaurant operator’s stock valued at $30,409,000 after buying an additional 417,000 shares in the last quarter. Trexquant Investment LP purchased a new stake in Sonic in the 3rd quarter valued at approximately $802,000. FIL Ltd purchased a new stake in Sonic in the 3rd quarter valued at approximately $62,558,000. Finally, JPMorgan Chase & Co. lifted its stake in Sonic by 361.1% in the 3rd quarter. JPMorgan Chase & Co. now owns 823,911 shares of the restaurant operator’s stock valued at $35,708,000 after buying an additional 645,244 shares in the last quarter.

SONC traded down $0.04 during trading on Monday, reaching $43.32. The company’s stock had a trading volume of 717,407 shares, compared to its average volume of 831,039. Sonic has a 52-week low of $23.22 and a 52-week high of $44.87. The firm has a market capitalization of $1.55 billion, a PE ratio of 29.07, a P/E/G ratio of 1.87 and a beta of 1.32.

Sonic announced that its Board of Directors has approved a stock buyback program on Wednesday, August 8th that permits the company to buyback $500.00 million in outstanding shares. This buyback authorization permits the restaurant operator to buy up to 40.5% of its shares through open market purchases. Shares buyback programs are often a sign that the company’s board of directors believes its shares are undervalued.

Sonic Company Profile

Sonic Corp. operates and franchises a chain of quick-service drive-in restaurants in the United States. As of August 31, 2017, the company operated 3,593 Sonic Drive-Ins in 45 states, of which 228 were owned and operated by the company and 3,365 were owned and operated by franchisees. The company also owns and leases 135 properties; and sublease 53 properties to franchisees and other parties.

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Earnings History and Estimates for Sonic (NASDAQ:SONC)

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