Denny’s Earnings: Here’s Why Investors are Excited Now
Denny’s Corporation (NASDAQ:DENN) 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 up 0.69%.
Denny’s Corporation Earnings Cheat Sheet
Results: Adjusted Earnings Per Share increased 14.29% to $0.08 in the quarter versus EPS of $0.07 in the year-earlier quarter.
Revenue: Decreased 6.52% to $116.6 million from the year-earlier quarter.
Actual vs. Wall St. Expectations: Denny’s Corporation reported adjusted EPS income of $0.08 per share. By that measure, the company missed the mean analyst estimate of $0.08. It missed the average revenue estimate of $116.66 million.
Quoting Management: John Miller, President and Chief Executive Officer, stated, “We delivered another quarter of solid results as we grew both our system-wide same-store sales and Adjusted Net Income per Share*. Our efforts to revitalize Denny’s image, while increasing the growth of the Denny’s brand and growing profitability and Free Cash Flow*, are taking hold as we continue to execute against our three key objectives. We believe that by leveraging our primarily franchise-focused business model and effectively allocating capital between reinvestments in the brand and returning cash to shareholders, we can provide attractive long-term shareholder returns.”
Key Stats (on next page)…
Revenue increased 1.84% from $114.49 million in the previous quarter. EPS increased 0% from $0.08 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 $0.09 and has not changed. For the current year, the average estimate has moved up from a profit of $0.33 to a profit of $0.34 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)