FinancialAdvisor's College Class (FACC)

[FinancialAdvisor]

Ruby Tuesday 1Q Profit Falls

*With earnings season officially here, I think it's about time to expose this busted economy for what it truly is, nothing but corporate greed that is about to fall apart at the seams... I will try and post as many earnings reports of companies as I see fit as we plow through October...

**Ruby Tuesday declined -1.40% in afterhours trading on Wednesday October 5th, guess we'll see more of a reaction tomorrow?...

Ruby Tuesday 1Q Profit Falls
Wednesday October 5, 5:50 pm ET
Ruby Tuesday Says 1Q Profit Falls on Higher Expenses, Sees 2Q Below Street Views

MARYVILLE, Tenn. (AP) -- Restaurant operator Ruby Tuesday Inc. on Wednesday said its fiscal first-quarter profit fell 26 percent, as higher operating costs eclipsed improved revenue.

The company also provided second-quarter guidance below Wall Street estimates.

Ruby Tuesday reported earnings of $21.6 million, or 34 cents per share, a penny above the average analyst estimate. A year ago, earnings were $29.1 million, or 44 cents per share.

Sales rose 15 percent to $308.2 million, above the mean analyst estimate of $303.2 million from Thomson Financial. Operating costs and expenses jumped 23 percent to $273.7 million.

Analysts expected the company to post earnings of 33 cents per share, on revenue of $303.2 million, according to a Thomson Financial survey.

Sales in restaurants open at least one year -- a key performance metric known as same-store sales -- fell 3.9 percent, weighed by a 6.4 percent drop at domestic franchised restaurants.

Ruby Tuesday attributed the same-store sales decline to a coupon program in the prior-year period, when it recorded $8 million in redemptions.

The company also projects second-quarter earnings of 27 cents to 28 cents per share, below analysts' current consensus of 32 cents.

Ruby Tuesday said the forecast reflects the impact of recent storms and higher oil prices on September same-store sales, which are expected to rise about 2 percent in the second quarter, below from an earlier estimate of 3 percent to 5 percent.

However, the company affirmed its earlier forecast of earnings per share growth of 12.5 percent to 15 percent in this year's second half, based on same-store sales growth between 3 percent to 5 percent.

Ruby Tuesday shares recently shed 5 cents to $21.40 in after-hours trading after being unavailable.


LINK: http://biz.yahoo.com/ap/051005/earns_ruby_tuesday.html?.v=1