Sonic Earnings Rise, Beat Expectations

(RTTNews) - Drive-in restaurant chain Sonic (SONC) revealed earnings for the fourth quarter that rose from last year, beating analysts expectations. Revenues climbed about 7 percent, matching the growth projected by experts.

The company also raised its earnings per share forecast for fiscal 2016, citing an increased share repurchase program. Sonic is projecting modest same-store sales improvement for the next fiscal year as well.

The company revealed net income for the fourth quarter of $26.3 million, or $0.50 per share. This included one-time gains stemming from tax-related items.

Excluding these items, the company's profit came in at $23.1 million, or $0.43 per share. This was up from $18.8 million, or $0.34 per share in the same period last year.

Analysts had expected the company to earn $0.42 per share.

Revenues for the three-month period rose to $175.3 million, compared to $163.8 million in the fourth quarter of 2014. This was in-line with the $175 million analysts were projecting.

Same-store sales climbed by 4.9 percent in the quarter. Same-store sales measure sales at established stores, stripping out additional sales from newly opened locations. They are considered a key gauge of performance for retailers and chain restaurants.

Looking ahead, the company predicted earnings per share growth of 16 percent to 20 percent. This was up from its previous outlook of 14 percent to 18 percent.

The improved forecast is fueled by higher share repurchase activity. Fewer shares outstanding drives up the earnings per share figure.

Same-store sales for 2016 is pojected to be 2 percent to 4 percent.