Regis Earnings: Here’s Why Investors are Ambivalent Now

Regis Corp. (NYSE:RGS) delivered a profit and missed Wall Street’s expectations, AND came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company.

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Regis Corp. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share decreased 96.88% to $0.01 in the quarter versus EPS of $0.32 in the year-earlier quarter.

Revenue: Decreased 11.97% to $504.9 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Regis Corp. reported adjusted EPS income of $0.01 per share. By that measure, the company missed the mean analyst estimate of $0.14. It missed the average revenue estimate of $519.66 million.

Quoting Management: “Service traffic is the engine of our business and accounts for over 75% of our revenue. My primary focus over the past six months has been to reverse the decline in service traffic Regis has been experiencing over the past several years,” said Dan Hanrahan, President and Chief Executive Officer. “This focus is producing positive results. We have slowed the revenue decline in same-store sales and are generating sequential improvement in our service business. Third quarter consolidated same-store service sales declined 0.3%, which improved 120 basis points from second quarter and 270 basis points from first quarter.”

Key Stats (on next page)…

Revenue decreased 0.25% from $506.17 million in the previous quarter. EPS decreased 66.67% from $0.03 in the previous quarter.

Looking Forward: Analysts have a neutral outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings is a profit of $0.18 and has not changed. For the current year, the average estimate is a profit of $0.43, which is the same with that ninety days ago.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)