Ruby Tuesday (RT) Quarterly SSS Estimates Reduced at Wunderlich

Wunderlich Securities maintained a Hold rating on Ruby Tuesday (NYSE: RT) and reduced its price target to $6.00 (from $6.50). Analyst Robert M. Derrington is cautious heading into earnings.

"Cautiously, we are trimming our Q3F14 (Feb) and Q4F14 (May) SSS in advance of Ruby Tuesday's (RT) scheduled earnings report this Wednesday AMC. Given inclement weather in Ruby's key geographic markets during Q3, we are lowering our co-SSS to -6.8% from -5.0%, and our Q3 EPS to ($0.10) from ($0.09), with SSS deleverage offset somewhat by cost-saving programs. And, given sustained competition, we are trimming Q4 SSS to -2.8% (vs. guidance "down-low singles to flat"), though cost saving programs are projected to improve EPS to $0.05 from $0.03," said Derrington.

"Including previous Q2F14 reported results, FY14 (May) EPS is revised to ($0.84) from ($0.92). While both SSS and EPS are projected to improve in FY2015, given Ruby's still fragile business model, we are lowering our PT to $6.00 from $6.50," he added.

For an analyst ratings summary and ratings history on Ruby Tuesday click here. For more ratings news on Ruby Tuesday click here.

Shares of Ruby Tuesday closed at $5.60 yesterday.

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