Jack in the Box Earnings: Here’s Why Investors are Selling Shares Now

Jack in the Box Inc. (NASDAQ:JACK) 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 down 2.2%.

Jack in the Box Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share decreased 2.38% to $0.41 in the quarter versus EPS of $0.42 in the year-earlier quarter.

Revenue: Decreased 30.19% to $350.32 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Jack in the Box Inc. reported adjusted EPS income of $0.41 per share. By that measure, the company beat the mean analyst estimate of $0.38. It missed the average revenue estimate of $363.39 million.

Quoting Management: Linda A. Lang, chairman and chief executive officer, said, “Jack in the Box company same-store sales increased 1.2 percent for the quarter exceeding that of the QSR sandwich segment by 1.0 percentage point for the comparable period, with system-wide same-store sales growth just slightly below the segment, according to The NPD Group’s SalesTrack® Weekly for the 12-week time period ended July 7th, 2013. Included in this segment are 15 of the top QSR sandwich and burger chain competitors.”

Key Stats (on next page)…

Revenue decreased 1.49% from $355.62 million in the previous quarter. EPS increased 24.24% from $0.33 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 $0.35 to a profit $0.40. For the current year, the average estimate has moved up from a profit of $1.61 to a profit of $1.65 over the last ninety days.

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