Jack in the Box Earnings: Here’s Why the Stock is Down 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 2.17%.

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Jack in the Box Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share decreased 31.25% to $0.33 in the quarter versus EPS of $0.48 in the year-earlier quarter.

Revenue: Decreased 29.81% to $355.6 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Jack in the Box Inc. reported adjusted EPS income of $0.33 per share. By that measure, the company beat the mean analyst estimate of $0.31. It missed the average revenue estimate of $358.87 million.

Quoting Management: Linda A. Lang, chairman and chief executive officer, said, “Jack in the Box company same-store sales increased 0.9 percent during the quarter, accelerating in the last two months of the quarter after a slow start which we attributed to pressures on consumer spending due to higher payroll taxes, delayed tax refunds and the rapid increase in gas prices in the last part of January and first half of February. Jack in the Box system same-store sales growth for the quarter exceeded that of the QSR sandwich segment by 1.9 percentage points for the comparable period, according to The NPD Group’s SalesTrack® Weekly for the 12-week time period ended April 14, 2013. Included in this segment are 15 of the top QSR sandwich and burger chains in the US. And on a weekly basis, the brand outperformed the segment for 11 out of the 12 weeks.”

Key Stats (on next page)…

Revenue decreased 23.61% from $465.52 million in the previous quarter. EPS decreased 38.89% from $0.54 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 $0.43 to a profit $0.41. For the current year, the average estimate has moved up from a profit of $1.54 to a profit of $1.61 over the last ninety days.

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