Ruby Tuesday Earnings: Here’s Why Shares are Down Now

Ruby Tuesday, Inc. (NYSE:RT) delivered a profit and met 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. Shares are down 1.84%.

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Ruby Tuesday, Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share decreased 44.44% to $0.10 in the quarter versus EPS of $0.18 in the year-earlier quarter.

Revenue: Decreased 5.37% to $307.4 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Ruby Tuesday, Inc. reported adjusted EPS income of $0.10 per share. By that measure, the company met the mean analyst estimate of $0.10. It missed the average revenue estimate of $312.3 million.

Quoting Management: JJ Buettgen, President and CEO, commented, “I am pleased with the progress we have made in evolving the Ruby Tuesday brand over the past quarter. We believe the initiatives we are working on will shift consumers’ perceptions of the brand toward a more mainstream, lively, and approachable position. We have already introduced a handful of new menu items, and our current advertising and merchandising materials portray a more fun, casual, and affordable personality for the brand. As we broaden the brand’s appeal and make it relevant for more everyday occasions, we will be able to more effectively compete in the marketplace.”

Key Stats (on next page)…

Revenue increased 1.04% from $304.23 million in the previous quarter. EPS increased to $0.10 in the quarter versus EPS of $-0.07 in the previous quarter.

Looking Forward: Analysts have a more positive outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has risen from a profit of $0.18 to a profit $0.19. For the current year, the average estimate has moved down from a profit of $0.28 to a profit of $0.25 over the last ninety days.

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

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