Darden Restaurants First Quarter Earnings Sneak Peek

S&P 500 (NYSE:SPY) component Darden Restaurants, Inc. (NYSE:DRI) will unveil its latest earnings on Monday, September 19, 2011. Darden Restaurants, Inc operates in the United States full-service dining restaurant industry.

Darden Restaurants, Inc. Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average estimate of analysts is for net income of 78 cents per share, a decline of 2.5% from the company’s actual earnings for the same quarter a year ago. During the past three months, the average estimate has moved down from 91 cents. Between one and three months ago, the average estimate moved down and dropped from 88 cents during the last month. For the year, analysts are projecting profit of $3.79 per share, a rise of 11.1% from last year.

Past Earnings Performance: The company fell in line with estimates last quarter after topping forecasts the quarter before. After coming in above the mean estimate by 3 cents in the third quarter of the last fiscal year, the company fell in line with expecations by reporting net income of $1 per share last quarter.

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Wall St. Revenue Expectations: On average, analysts predict $1.93 billion in revenue this quarter, a rise of 6.6% from the year ago quarter. Analysts are forecasting total revenue of $7.99 billion for the year, a rise of 6.5% from last year’s revenue of $7.5 billion.

Analyst Ratings: Analysts are bullish on this stock with 23 analysts rating it as a buy, none rating it as a sell and five rating it as a hold.

Key Stats:

The company has now seen net income rise in three straight quarters. In the fourth quarter of the last fiscal year, net income rose 18.9% while it rose 12.6% in the third quarter of the last fiscal year and 23.5% in the second quarter of the last fiscal year.

Revenue has risen the past four quarters. Revenue increased 6.8% to $1.99 billion in fourth quarter of the last fiscal year. The figure rose 5.5% in the third quarter of the last fiscal year from the year earlier, climbed 5.2% in the second quarter of the last fiscal year from the year-ago quarter and 4.2% in the first quarter of the last fiscal year.

Competitors to Watch: Grill Concepts, Inc. (GLLC), Landry’s Restaurants, Inc (LNY), Ruth’s Hospitality Group, Inc. (NASDAQ:RUTH), Bravo Brio Restaurant Group, Inc. (NASDAQ:BBRG), Granite City Food & Brewery Ltd. (NASDAQ:GCFB), O’Charley’s Inc. (NASDAQ:CHUX), Ark Restaurants Corp. (NASDAQ:ARKR), Morton’s Restaurant Group, Inc. (NYSE:MRT), Red Robin Gourmet Burgers, Inc. (NASDAQ:RRGB), and McCormick & Schmick’s Seafood Restaurant (NASDAQ:MSSR).

Stock Price Performance: During July 18, 2011 to September 13, 2011, the stock price had fallen $8.80 (-16.8%) from $52.52 to $43.72. The stock price saw one of its best stretches over the last year between October 27, 2010 and November 5, 2010 when shares rose for eight-straight days, rising 6.8% (+$3) over that span. It saw one of its worst periods between August 30, 2011 and September 9, 2011 when shares fell for eight-straight days, falling 10.3% (-$5) over that span. Shares are down $1.72 (-3.8%) year to date.

(Source: Xignite Financials)

Investing Insights: Steve Jobs Prepares to Deliver a New Catalyst for Apple’s Stock.

 

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