Chipotle Mexican Grill Fourth Quarter Earnings Sneak Peek

S&P 500 (NYSE:SPY) component Chipotle Mexican Grill, Inc. (NYSE:CMG) will unveil its latest earnings on Tuesday, February 5, 2013. Chipotle Mexican Grill develops and operates fast-casual, fresh Mexican food restaurants in 35 states throughout the United States, the District of Columbia, and Ontario, Canada.

Chipotle Mexican Grill, Inc. Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average analyst estimate is for profit of $1.95 per share, a rise of 7.7% from the company’s actual earnings for the year-ago quarter. During the past three months, the average estimate has moved down from $2.10. Between one and three months ago, the average estimate was unchanged. It has since dropped over the last month. For the year, analysts are projecting net income of $8.85 per share, a rise of 30.9% from last year.

Past Earnings Performance: The company missed estimates last quarter after beating forecasts in the prior two. In the third quarter, the company reported profit of $2.27 per share versus a mean estimate of net income of $2.30 per share. In the second quarter, the company beat estimates by 27 cents.

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A Look Back: In the third quarter, profit rose 19.6% to $72.3 million ($2.27 a share) from $60.4 million ($1.90 a share) the year earlier, but fell short analyst expectations. Revenue rose 18.4% to $700.5 million from $591.9 million.

Wall St. Revenue Expectations: Analysts predict a rise of 17.1% in revenue from the year-earlier quarter to $698.9 million.

Analyst Ratings: There are mostly holds on the stock with 14 of 22 analysts surveyed giving that rating.

Key Stats:

With double-digit revenue growth the past four quarters, this earnings release is a chance to keep that positive trend going. The company has averaged year-over-year revenue growth of 22.2% over the last four quarters.

After experiencing income increases the last three quarters, the company is hoping to keep the good news coming with this earnings announcement. Net income rose 35.1% in the first quarter and 61.2% in the second quarter before increasing again in the third quarter.

Balance Sheet Analysis: The company’s current ratio of assets to liabilities came in at 4.12 last quarter. Having a ratio above 2:1 is usually considered a good indicator of a company’s liquidity and ability to meet creditor demands. The company regressed in this liquidity measure from 4.13 in the second quarter to the last quarter driven in part by an increase in liabilities. Current liabilities increased 6.1% to $159.3 million while assets rose 5.8% to $656.7 million.

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(Company fundamentals by Xignite Financials. Earnings estimates provided by Zacks)