$96.29 Million in Sales Expected for Sonic Co. (SONC) This Quarter

Equities analysts expect Sonic Co. (NASDAQ:SONC) to report sales of $96.29 million for the current quarter, according to Zacks. Four analysts have issued estimates for Sonic’s earnings, with the highest sales estimate coming in at $98.00 million and the lowest estimate coming in at $94.66 million. Sonic posted sales of $105.43 million in the same quarter last year, which indicates a negative year over year growth rate of 8.7%. The company is scheduled to announce its next earnings report on Thursday, January 3rd.

According to Zacks, analysts expect that Sonic will report full-year sales of $403.61 million for the current fiscal year, with estimates ranging from $398.13 million to $409.50 million. For the next fiscal year, analysts anticipate that the firm will report sales of $416.99 million, with estimates ranging from $407.20 million to $422.60 million. Zacks’ sales calculations are an average based on a survey of analysts that that provide coverage for Sonic.

Sonic (NASDAQ:SONC) last posted its quarterly earnings data on Tuesday, October 16th. The restaurant operator reported $0.52 EPS for the quarter, topping the Thomson Reuters’ 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 during the quarter, compared to analyst estimates of $113.22 million. During the same period in the previous year, the business earned $0.45 EPS. Sonic’s quarterly revenue was down 9.5% on a year-over-year basis.

Several research firms have commented on SONC. Morgan Stanley boosted their price objective on Sonic from $34.00 to $43.50 and gave the stock an “equal weight” rating in a research note on Thursday, September 27th. Barclays upgraded Sonic from an “underweight” rating to an “equal weight” rating in a research note on Wednesday, September 26th. Stephens lowered Sonic from an “overweight” rating to an “equal weight” rating and boosted their price objective for the stock from $40.00 to $43.50 in a research note on Wednesday, September 26th. Piper Jaffray Companies lowered Sonic from an “overweight” rating to a “neutral” rating in a research note on Tuesday, September 25th. Finally, William Blair lowered Sonic from an “outperform” rating to a “market perform” rating in a research note on Tuesday, September 25th. Thirteen equities research analysts have rated the stock with a hold rating, three have issued a buy rating and one has assigned a strong buy rating to the company’s stock. Sonic currently has an average rating of “Hold” and an average price target of $35.88.

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 legal filing with the SEC, which can be accessed through this link. 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 transaction, the insider now owns 32,065 shares in the company, valued at $1,386,490.60. The disclosure for this sale can be found here. Insiders own 6.24% of the company’s stock.

Institutional investors have recently modified their holdings of the company. Schwab Charles Investment Management Inc. boosted its holdings in shares of Sonic by 10.0% during the 2nd quarter. Schwab Charles Investment Management Inc. now owns 312,839 shares of the restaurant operator’s stock worth $10,768,000 after purchasing an additional 28,564 shares during the last quarter. HL Financial Services LLC boosted its holdings in shares of Sonic by 14.9% during the 2nd quarter. HL Financial Services LLC now owns 11,979 shares of the restaurant operator’s stock worth $412,000 after purchasing an additional 1,553 shares during the last quarter. Itau Unibanco Holding S.A. acquired a new position in shares of Sonic during the 2nd quarter worth approximately $284,000. Catalyst Capital Advisors LLC acquired a new position in shares of Sonic during the 2nd quarter worth approximately $706,000. Finally, Point72 Asset Management L.P. lifted its holdings in Sonic by 109.0% in the second quarter. Point72 Asset Management L.P. now owns 4,500 shares of the restaurant operator’s stock valued at $155,000 after acquiring an additional 54,500 shares during the last quarter.

NASDAQ:SONC traded up $0.04 during trading hours on Friday, hitting $43.30. 577,200 shares of the stock were exchanged, compared to its average volume of 950,306. Sonic has a 52-week low of $23.22 and a 52-week high of $44.87. The company has a current ratio of 1.68, a quick ratio of 1.78 and a debt-to-equity ratio of -2.47. The firm has a market cap of $1.54 billion, a P/E ratio of 29.03, a price-to-earnings-growth ratio of 1.86 and a beta of 1.48.

Sonic declared that its Board of Directors has authorized a stock buyback program on Thursday, July 12th that authorizes the company to buyback $500.00 million in outstanding shares. This buyback authorization authorizes the restaurant operator to purchase up to 39.6% of its stock through open market purchases. Stock buyback programs are often an indication that the company’s board of directors believes its stock is 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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