Ruby Tuesday Reports Lower Q3 Sales and Profit; Lifts Full-Year EPS Outlook

Restaurant operator Ruby Tuesday

released its fiscal third-quarter financial results after the closing bell on Wednesday. The company reported lower profits and sales for the period. Earnings were in-line with Wall Street estimates while sales came in lower than expected. Ruby Tuesday also lifted its full-year EPS outlook to a range above current consensus estimates. In late trading, the stock was last down around 2 percent to $8.01, but remained positive on the day. During regular trading hours, Ruby Tuesday shares climbed more than 5 percent as investors geared up for the company's Q3 report. For the third-quarter, Ruby Tuesday reported net income of $2.2 million or $0.04 per share, versus $4.5 million or $0.07 per share, in last year's corresponding period. On an adjusted basis, which is comparable to analysts' consensus estimates, the company reported earnings per share of $0.10 compared to $0.22 in last year's third-quarter. This was in-line with Wall Street consensus expectations. Total sales in the period were down 4.2 percent to $307.4 million from $320.7 million last year. This was below analysts' consensus revenue estimates of $312.3 million. Looking ahead to the full-year, Ruby Tuesday lifted its GAAP and non-GAAP earnings outlook. The company said that it now expects full-year EPS of $0.18 to $0.22 versus its previous view calling for EPS ranging between a loss of $0.03 and a profit of $0.03. Adjusted earnings per share are now expected to be between $0.28 and $0.32. This compares to Ruby Tuesday's previous adjusted EPS guidance of $0.24 to $0.30 and current Wall Street consensus of $0.25 for fiscal 2013.