Jack in the Box Third Quarter Earnings PREVIEW

Jack in the Box Inc. (NASDAQ:JACK) will unveil its latest earnings on Wednesday, August 8, 2012. Jack in the Box owns, operates and franchises quick-service restaurants and Qdoba Mexican Grill fast-casual restaurants.

Jack in the Box Inc. Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average estimate of analysts is for net income of 36 cents per share, a decline of 5.3% from the company’s actual earnings for the same quarter a year ago. During the past three months, the average estimate has moved down from 38 cents. Between one and three months ago, the average estimate moved down. It has been unchanged at 36 cents during the last month. Analysts are projecting profit to rise by 11.2% compared to last year’s $1.43.

Past Earnings Performance: Last quarter, the company reported profit of 48 cents per share versus a mean estimate of net income of. The company has beaten estimates for the past three quarters.

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A Look Back: In the second quarter, profit rose more than threefold to $21.6 million (48 cents a share) from $6.8 million (13 cents a share) the year earlier, exceeding analyst expectations. Revenue rose 0.3% to $506.6 million from $505.1 million.

Stock Price Performance: Between May 8, 2012 and August 2, 2012, the stock price rose $4.12 (18.3%), from $22.51 to $26.63. The stock price saw one of its best stretches over the last year between June 13, 2012 and June 20, 2012, when shares rose for six straight days, increasing 6.9% (+$1.69) over that span. It saw one of its worst periods between March 29, 2012 and April 10, 2012 when shares fell for eight straight days, dropping 5.9% (-$1.42) over that span.

Analyst Ratings: There are eight out of 14 analysts surveyed (57.1%) rating Jack in the Box a buy. Over the past 90 days, the average rating for the stock has moved up from hold to moderate buy.

Key Stats:

On the top line, the company is hoping to build on a revenue increase last quarter. Revenue fell 1.8% in the first quarter after increasing in the second quarter.

Wall St. Revenue Expectations: On average, analysts predict $509.8 million in revenue this quarter, a decline of 1.8% from the year-ago quarter. Analysts are forecasting total revenue of $2.18 billion for the year, a decline of 0.5% from last year’s revenue of $2.19 billion.

Balance Sheet Analysis: The company’s current ratio of assets to liabilities came in at 1.04 last quarter. The current ratio is an indication of a firm’s liquidity and ability to meet creditor demands and generally, for every dollar the company owes in the short term, it has that figure available in assets that can be converted to cash in the short term. The company regressed in this liquidity measure from 1.08 in the first quarter to the last quarter driven in part by an increase in liabilities. Current liabilities increased 4.8% to $258.2 million while assets rose 1% to $267.4 million.

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(Company fundamentals by Xignite Financials. Earnings estimates provided by Zacks)

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