Famous Dave’s of America Inc. (NASDAQ:DAVE) delivered a profit and missed 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.
Famous Dave’s of America Inc. Earnings Cheat Sheet
Results: Adjusted Earnings Per Share decreased 90.91% to $0.01 in the quarter versus EPS of $0.11 in the year-earlier quarter.
Revenue: Decreased 2.37% to $36.6 million from the year-earlier quarter.
Actual vs. Wall St. Expectations: Famous Dave’s of America Inc. reported adjusted EPS income of $0.01 per share. By that measure, the company missed the mean analyst estimate of $0.14. It missed the average revenue estimate of $37.98 million.
Quoting Management: John Gilbert, CEO, commented, “Six months ago when I joined Famous Dave’s as CEO, I stated that we would make same store sales our first priority, and they remain our top priority. Our first quarter sales, royalties and franchise fee results were disappointing, which led to poor EBITDA and EPS results. Company-owned restaurants performed slightly better than the industry, according to BBI. Over the past six months, we’ve developed a strategic framework for performance improvement, tested a number of smart, innovative tactics that have proven successful, and launched the best of these tactics in our company restaurants. As the franchisor, we occasionally get ahead of our franchisees in the testing and launching of new initiatives, and while we launched these new sales drivers in our corporate restaurants during the quarter, the bulk of our franchisees did not add these tactics until the second quarter. This is reflected in the four point sales gap between company-owned and franchise-operated sales performance.”
Key Stats (on next page)…
Revenue increased 0.94% from $36.26 million in the previous quarter. EPS decreased 90% from $0.10 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 $0.27 and has not changed. For the current year, the average estimate is a profit of $0.72, which is the same with that ninety days ago.
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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)