Arcos Dorados Holding Inc (NYSE:ARCO) had a loss and missed Wall Street’s expectations, BUT beat the revenue expectation. The revenue beat is a positive sign to shareholders seeking high growth out of the company.
Arcos Dorados Holding Inc Earnings Cheat Sheet
Results: Adjusted Earnings Per Share decreased to $-0.03 in the quarter versus EPS of $0.12 in the year-earlier quarter.
Revenue: Rose 6% to $976.9 million from the year-earlier quarter.
Actual vs. Wall St. Expectations: Arcos Dorados Holding Inc reported adjusted EPS loss of $0.03 per share. By that measure, the company missed the mean analyst estimate of $0.05. It beat the average revenue estimate of $960.38 million.
Quoting Management: “The introduction of the highly successful and globally recognized Monopoly promotion in Brazil in April is driving consumption in a soft market. While we remain cautious on the outlook in markets such as Venezuela, our solid first quarter results are on target with our full year expectations and will benefit from easing comparable sales and cost containment initiatives in coming quarters,” said Woods Staton, Chairman and Chief Executive Officer of Arcos Dorados.
Key Stats (on next page)…
Revenue increased 1.56% from $961.91 million in the previous quarter. EPS decreased to $-0.03 in the quarter versus EPS of $0.21 in the previous quarter.
Looking Forward: Analysts have a more negative outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has fallen from a profit of $0.13 to a profit $0.09. For the current year, the average estimate has moved down from a profit of $0.69 to a profit of $0.6 over the last ninety days.
Stocks with improving earnings metrics are worthy of your extra attention. In fact, “E = Earnings Are Increasing Quarter-Over-Quarter” is a core component of our CHEAT SHEET investing framework for this very reason. Don’t waste another minute – click here and get our CHEAT SHEET stock picks now.
(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)