Ruby Tuesday Trims Guidance - TheStreet

Ruby Tuesday

(RI)

has seen better days.

The restaurant company reported lower third-quarter profit and trimmed guidance for the current quarter.

Earnings at the Tennessee-based group fell to $27.6 million, or 42 cents a share, for the third quarter ended March 1, compared with $32.4 million, or 48 cents a share, a year ago. Revenue for the quarter was $289 million, vs. $271 million a year ago. Analysts were expecting 39 cents a share on revenue of $296 million, based on a Thomson First Call survey.

The company, which reported results after the closing bell Wednesday, said the profit decline was less than it expected because of a lower tax rate and the fact that an advertising campaign was delayed until the fourth quarter.

Ruby Tuesday also lowered fourth-quarter guidance, largely because of higher promotional costs. The company trimmed its EPS forecast to 40 cents to 43 cents, down from 42 cents to 47 cents. The consensus forecast is 43 cents.

Shares closed at $25.38 Wednesday.