Arcos Dorados Holding Inc Earnings: Everything You Must Know Now
Arcos Dorados Holding Inc (NYSE:ARCO) delivered a profit and missed Wall Street’s expectations, AND came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company.
Arcos Dorados Holding Inc Earnings Cheat Sheet
Results: Adjusted Earnings Per Share decreased 33.33% to $0.04 in the quarter versus EPS of $0.06 in the year-earlier quarter.
Revenue: Rose 9.4% to $989.2 million from the year-earlier quarter.
Actual vs. Wall St. Expectations: Arcos Dorados Holding Inc reported adjusted EPS income of $0.04 per share. By that measure, the company missed the mean analyst estimate of $0.07. It missed the average revenue estimate of $995.32 million.
Quoting Management: “Our cost containment initiatives continue to gain traction, resulting in G&A leverage. First half results are on target and we currently expect to reach our full year guidance. We will continue to focus on the areas in our control such as marketing and promotions in order to sustain comparable sales growth”, said Woods Staton, Chairman and Chief Executive Officer of Arcos Dorados.
Key Stats (on next page)…
Revenue increased 1.26% from $976.91 million in the previous quarter. EPS were the same at $0.04 as 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 $0.18 to a profit $0.14. For the current year, the average estimate has moved down from a profit of $0.57 to a profit of $0.38 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)