DineEquity Earnings: Here’s Why Shares are Up Now

DineEquity, Inc. (NYSE:DIN) delivered a profit and beat Wall Street’s expectations, BUT 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 0.99%.

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DineEquity, Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share decreased 16.18% to $1.14 in the quarter versus EPS of $1.36 in the year-earlier quarter.

Revenue: Decreased 33.59% to $163.1 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: DineEquity, Inc. reported adjusted EPS income of $1.14 per share. By that measure, the company beat the mean analyst estimate of $1.01. It missed the average revenue estimate of $163.79 million.

Quoting Management: “DineEquity started 2013 by delivering solid financial results in the first quarter. Significant strides were made against our strategic priorities. As promised, we announced our capital allocation strategy, which returns significant free cash flow to shareholders through a combination of a meaningful dividend and a $100 million share repurchase authorization,” said Julia A. Stewart, Chairman and Chief Executive Officer of DineEquity, Inc. “We successfully re-priced our senior secured credit facility, lowering the interest rate of the term loan to 3.75% from 4.25%. In addition, modifications to debt covenants were made to reduce limitations on our capital allocation options. We are laser focused on managing our capital structure and G&A. In addition, we remain steadfast in our strategic plans for both IHOP and Applebee’s, designed to drive consistent and sustainable same-restaurant sales and traffic growth in a challenging consumer environment.”

Key Stats (on next page)…

Revenue increased 2.81% from $158.64 million in the previous quarter. EPS increased 37.35% from $0.83 in the previous quarter.

Looking Forward: Analysts have a more negative outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has fallen from a profit of $1.10 to a profit $0.90. For the current year, the average estimate has moved down from a profit of $4.13 to a profit of $3.73 over the last ninety days.

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