Famous Dave’s of America Earnings: Here’s Why the Stock is Rising Now

Famous Dave’s of America Inc. (NASDAQ:DAVE) 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 4.14%.

Famous Dave’s of America Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased 8% to $0.27 in the quarter versus EPS of $0.25 in the year-earlier quarter.

Revenue: Rose 5.03% to $43.4 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Famous Dave’s of America Inc. reported adjusted EPS income of $0.27 per share. By that measure, the company beat the mean analyst estimate of $0.23. It beat the average revenue estimate of $41.79 million.

Quoting Management: John Gilbert, CEO of Famous Dave’s, commented, “I am pleased with our performance in spite of the economic environment that continues to challenge the restaurant industry. Our improved quarterly financials are the result of a more focused organization executing on our previously announced program to optimize the customer experience at each point of interaction: dine-in, To Go, catering and retail. As a result of these efforts I firmly believe we are a stronger company today than we were one year ago with company-owned same store sales growth, improved store level profitability and reduced G&A expenses more appropriate for the size of our business.”

Key Stats (on next page)…

Revenue increased 18.58% from $36.6 million in the previous quarter. EPS increased 2600% from $0.01 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 $0.15 to a profit $0.19. For the current year, the average estimate has moved down from a profit of $0.64 to a profit of $0.56 over the last ninety days.

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