Sonic Co. Forecasted to Earn Q2 2019 Earnings of $0.15 Per Share (SONC)

Sonic Co. (NASDAQ:SONC) – Analysts at William Blair lowered their Q2 2019 earnings per share (EPS) estimates for shares of Sonic in a note issued to investors on Tuesday, October 16th. William Blair analyst S. Zackfia now anticipates that the restaurant operator will earn $0.15 per share for the quarter, down from their previous estimate of $0.16. William Blair has a “Market Perform” rating on the stock. William Blair also issued estimates for Sonic’s Q4 2019 earnings at $0.55 EPS and FY2019 earnings at $1.58 EPS.

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

Other equities research analysts have also issued reports about the company. BidaskClub lowered Sonic from a “strong-buy” rating to a “buy” rating in a research note on Wednesday, August 1st. Canaccord Genuity reissued a “hold” rating and set a $33.00 price objective on shares of Sonic in a research note on Wednesday, June 27th. Telsey Advisory Group raised their price objective on Sonic from $32.00 to $40.00 and gave the stock a “market perform” rating in a research note on Wednesday, September 12th. Guggenheim reissued a “buy” rating and set a $38.00 price objective on shares of Sonic in a research note on Sunday, July 1st. Finally, Wells Fargo & Co raised their price objective on Sonic from $28.00 to $30.00 and gave the stock a “market perform” rating in a research note on Wednesday, June 27th. Thirteen analysts have rated the stock with a hold rating, three have assigned a buy rating and one has given a strong buy rating to the company. Sonic currently has an average rating of “Hold” and an average price target of $35.88.

SONC opened at $43.30 on Thursday. The firm has a market cap of $1.54 billion, a PE ratio of 29.03, a P/E/G ratio of 1.86 and a beta of 1.48. The company has a debt-to-equity ratio of -2.47, a current ratio of 1.68 and a quick ratio of 1.78. Sonic has a fifty-two week low of $23.22 and a fifty-two week high of $44.87.

Institutional investors and hedge funds have recently added to or reduced their stakes in the company. Point72 Asset Management L.P. lifted its holdings in shares of 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 purchasing an additional 54,500 shares in the last quarter. Engineers Gate Manager LP purchased a new stake in shares of Sonic during the second quarter worth $210,000. Oppenheimer & Co. Inc. purchased a new stake in shares of Sonic during the second quarter worth $215,000. Parametrica Management Ltd purchased a new stake in shares of Sonic during the second quarter worth $221,000. Finally, Edmonds Duncan Registered Investment Advisors LLC purchased a new stake in shares of Sonic during the second quarter worth $243,000.

In other news, insider John H. Budd III sold 89,176 shares of the stock in a transaction 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 completion of the sale, the insider now owns 32,065 shares in the company, valued at $1,386,490.60. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through the SEC website. Also, VP Carolyn C. Cummins sold 2,500 shares of the stock in a transaction on Monday, October 1st. The shares were sold at an average price of $43.31, for a total value of $108,275.00. The disclosure for this sale can be found here. 6.24% of the stock is owned by corporate insiders.

Sonic announced that its Board of Directors has initiated a stock buyback program on Thursday, July 12th that permits the company to buyback $500.00 million in shares. This buyback authorization permits the restaurant operator to purchase up to 39.6% of its stock through open market purchases. Stock buyback programs are usually an indication that the company’s management 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.

Further Reading: Leveraged Buyout (LBO) Explained

Earnings History and Estimates for Sonic (NASDAQ:SONC)

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