DineEquity Earnings: Here’s Why Investors are Excited Now

DineEquity, Inc. (NYSE:DIN) delivered a profit and beat Wall Street’s expectations, AND beat the revenue expectation. The revenue beat is a positive sign to shareholders seeking high growth out of the company. Shares are up 10.73%.

DineEquity, Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share decreased 3.77% to $1.02 in the quarter versus EPS of $1.06 in the year-earlier quarter.

Revenue: Decreased 31.08% to $158.1 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: DineEquity, Inc. reported adjusted EPS income of $1.02 per share. By that measure, the company beat the mean analyst estimate of $0.92. It beat the average revenue estimate of $156.74 million.

Quoting Management: “DineEquity’s second quarter included a number of accomplishments. Same-restaurant sales were positive for both brands. In particular, same-restaurant sales at IHOP rose 1.9%, with an increase in guest traffic. This is IHOP’s first quarter of both positive same-restaurant sales and guest traffic since the fourth quarter of 2010. We are very pleased with the results and will continue our efforts to build momentum. Applebee’s performance was also strong in an uneven consumer environment, generating same-restaurant sales growth of 1.3%,” said Julia A. Stewart, Chairman and Chief Executive Officer of DineEquity, Inc. “We are actively managing our Shared Services model, driving cost efficiencies and innovation for both brands. We continued to execute on our balanced approach to return significant free cash flow to our stockholders, paying a second quarter dividend of $0.75 per share, resulting in a very competitive yield. We also repurchased $14.5 million of our common stock, creating additional stockholder value.”

Key Stats (on next page)…

Revenue decreased 3.11% from $163.17 million in the previous quarter. EPS decreased 10.53% from $1.14 in the previous quarter.

Looking Forward: Analysts have a more positive outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has risen from a profit of $0.91 to a profit $0.92. For the current year, the average estimate has moved up from a profit of $3.69 to a profit of $3.90 over the last ninety days.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)