Brinker International Earnings: Here’s Why Investors are Dumping Shares

Brinker International Inc. (NYSE:EAT) delivered a profit and met 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. Shares are down 0%.

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Brinker International Inc. Earnings Cheat Sheet

Results: Net income increased 4.29% to $37.2 million (50 cents per diluted share) in the quarter versus a net gain of $35.67 million in the year-earlier quarter.

Revenue: Rose 1.16% to $689.8 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Brinker International Inc. reported adjusted net income of 50 cents per share. By that measure, the company met the mean analyst estimate of $0.5. It missed the average revenue estimate of $692.95 million.

Quoting Management: “Brinker continued to take market share again this quarter, as we delivered our eighth consecutive quarter of positive sales growth, despite fewer holiday days in the quarter versus last year,” said Wyman Roberts, President and Chief Executive Officer. “This demonstrates that our strategies designed to strengthen our margins, reinvest in our restaurants, and focus on differentiated food and service initiatives are working, as we continue to track to our goal of doubling EPS.”

Key Stats:

Revenue increased 0.92% from $683.51 million in the previous quarter. Net income increased 33.52% from $27.86 million in the previous quarter.

Looking Forward: Analysts have a neutral outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings is a profit of $0.71 and has not changed. For the current year, the average estimate is a profit of $2.33, which is the same with that ninety days ago.

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(Company fundamentals provided by Xignite Financials.)