Analyst Reviews to Watch: Sonic Corporation (NASDAQ:SONC)

Sonic Corporation (NASDAQ:SONC) fell -2.94% during previous trade. Canaccord Genuity issued rating on the stock of Sonic Corporation (NASDAQ:SONC) in a research note issued to investors on Mar-20-17, the stock received “Downgrade” rating from Buy to Hold from $30 to $24. Additionally Deutsche Bank issued their verdict on the stock of the company, on record date of Oct-25-16 the stock was “Reiterated” as Hold from $27 to $25 besides that on Oct-25-16 Sonic Corporation (NASDAQ:SONC) was “Reiterated” by Canaccord Genuity as Buy from $32 to $30. Furthermore on Oct-25-16 the stock was “Downgraded” by Telsey Advisory Group from Outperform to Market Perform from $36 to $27.

Sonic Corporation (NASDAQ:SONC) shares ended last trading session at the price of $23.08 whereas a number of traders indicating mean target price will hit $28.21 over the next twelve months, mean value of price target most recently revised on 03/15/17. Sonic Corporation (NASDAQ:SONC)’s highest estimates of price target are $33 and low forecast is $24 based on the opinion of 14 analysts. The price target estimates represents a standard deviation of 2.06. However brokerage recommendations suggests an ABR of 2.50 based on calls of 12 experts, where 4 brokers polls the stock a Strong Buy, 0 suggest the stock a Buy, 7 suggest Hold, 0 are rating the stock as Sell while 1 as Strong Sell.

Sonic Corporation (NASDAQ:SONC) is expected to release the earnings of its current quarter on 3/28/17 After Market Close. The company is expected to release $0.15 EPS for current quarter according to 16 analysts whereas the company reported $0.18 EPS during same quarter a year ago. For the current quarter the stock has lowest EPS estimates of $0.11 and high estimate of $0.17. For the current year Sonic Corporation (NASDAQ:SONC) has set to release EPS of $1.26 as per the sentiments of 16 analysts, however according to 16 analysts, the company expected to release $1.41EPS for next year.

Sonic Corporation (NASDAQ:SONC)’s average revenue estimates for the current quarter are $106.22M according to 14 number of analysts. However its lowest revenue estimates are $103.46M and highest revenue estimates are $108.2M. A year ago the company’s sales were $133.16M. Its yearly sales growth estimates are -20.20%. For the next quarter the company has anticipated average revenues of $128.71M, according to the sentiments of 14 analysts. For the current year the company has fixed $487.42M revenues, as per the opinion of 16 analysts. For the current year the company has low revenue estimates of $465.77M in contradiction of high revenue estimates of $513M. Whereas for the next year revenues are set at $450.57M by 16 analysts.

The stock exchanged hands 2.10M shares versus average trading capacity of 783,107 shares, while its shares’ total market worth is $1.02B along with 44.69M outstanding shares. Sonic Corporation (NASDAQ:SONC) shares were trading -35.29% below from the 52-week high price mark of $35.67 and +10.55% above from the 52-week price bottom of $20.88. However the company observed 52 week high price on 04/06/16 and witnessed 52 week low price on 10/25/16. The company’s price sits -9.27% below from its 50-day moving average of $25.17 and -12.77% far from the stock’s 200-day moving average which is $25.93. Sonic Corporation (NASDAQ:SONC)’s price to sales ratio for trailing twelve month stands at 1.72. However the company’s price to cash per share for most recent quarter stands at 24.67. Its price to free cash flow for trailing twelve months is 29.31.

Earnings Review: Sonic Corporation (NASDAQ:SONC)

Shares of Sonic Corporation (NASDAQ:SONC) jumped 0.42% to reach at $26.20 during previous trading session. The company has experienced volume of 2,634,027 shares while on average the company has a capacity of trading 1.02M share.

Sonic Corporation (NASDAQ:SONC) the nation’s largest chain of drive-in restaurants, on January 5, 2017 announced results for its first fiscal quarter ended November 30, 2016.

Key highlights of the company’s first quarter of fiscal year 2017 included:

  • Net income per diluted share increased 17% to $0.28 compared with $0.24 in the same period of the prior year; adjusted net income per diluted share was flat versus the prior-year period at $0.24;
  • System same-store sales declined 2.0%, consisting of a 2.0% same-store sales decrease at franchise drive-ins and 2.4% decrease at company drive-ins;
  • Company drive-in margins declined by 150 basis points;
  • Fourteen new franchise drive-ins opened and 56 drive-ins were refranchised; and
  • The company repurchased 2.0 million outstanding shares.

“Our first quarter results reflect a sluggish consumer landscape and exceptionally strong prior-year performance,” said Cliff Hudson, Sonic Corp. CEO. “Although the business faces even tougher sales and margin hurdles in the second fiscal quarter, we remain optimistic in our ability to show sequential same-store sales and profitability improvement beginning in the second half of fiscal 2017.

“Our unit growth, capital structure, refranchising and technology initiatives are performing well,” continued Hudson. “We refranchised 56 drive-ins during the quarter and remain confident that we will complete our targeted refranchising transactions prior to the end of the third fiscal quarter, leaving us with a more efficient, higher-margin portfolio of company-owned stores. We are also pleased to have repurchased 2 million shares in the first quarter of 2017, representing 4% of shares outstanding, while continuing to invest in the people, development and content that will drive our consumer-facing technology to the next level.”

Sonic Corporation (NASDAQ:SONC) holds the market capitalization of $1.20B along with 46.70M outstanding shares. During the last trade, stock’s minimum price has been reached out at $26.15 while the maximum trading price moved at $27.17. Currently the stock price is moving -26.95% off from the highest level of twelve months and +24.80% above from twelve months low. Sonic Corporation (NASDAQ:SONC) marked 52-week highest price level of $35.86 on 04/06/16 and 52-week lowest price level of $20.99 on 10/25/16. For the stock, price target value has been calculated at $27.21 based on calls of 14 experts. Stock’s minimum price target estimates has been figured out at $22.00 while the maximum price target forecast is established at $33.00.

As of current trade, Sonic Corporation (NASDAQ:SONC) has shown weekly downbeat performance of -4.52%. Its six months performance indicated a bearish movement while its yearly performance reflected a negative trend of -15.19%. Year-to-date (YTD) performance of the stock illustrate downbeat trend of -1.17%. Shares of Sonic Corporation (NASDAQ:SONC) currently have an ABR of 2.64, derived from a total of 11 opinions. The company’s price sits 0.51% above from its 50-day moving average of $27.11 and -7.96% below from the stock’s 200-day moving average of $26.88. The company has Relative Strength Index (RSI 14) of 46.10 along with Average True Range (ATR 14) of 0.81. Its weekly and monthly volatility is 3.45%, 2.85% respectively. The company’s beta value is at 1.46.

Sonic Corporation (NASDAQ:SONC) currently has a PEG ratio of 1.34 where as its P/E ratio is 20.57. The company’s price to sales ratio for trailing twelve months is 2.07, whereas price to cash per share for the most recent quarter is 2.07. Sonic Corporation (NASDAQ:SONC)’s price to free cash flow for trailing twelve months is 26.01. Its quick ratio for most recent quarter is 1.80 along with current ratio for most recent quarter of 1.80. Sonic Corporation (NASDAQ:SONC) has a Return on Assets of 10.00%. The company currently has a Return on Equity of -136.30% and Return on Investment of 17.20%.