Kona Grill Inc. (NASDAQ:KONA) 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.
Kona Grill Inc. Earnings Cheat Sheet
Results: Adjusted Earnings Per Share decreased 7.69% to $0.12 in the quarter versus EPS of $0.13 in the year-earlier quarter.
Revenue: Decreased 2.73% to $23.5 million from the year-earlier quarter.
Actual vs. Wall St. Expectations: Kona Grill Inc. reported adjusted EPS income of $0.12 per share. By that measure, the company beat the mean analyst estimate of $0.11. It missed the average revenue estimate of $23.91 million.
Quoting Management: “We are encouraged by the solid financial performance we achieved in the first quarter despite inclement weather and economic headwinds,” said Berke Bakay, president and CEO of Kona Grill. “As we continued to focus on streamlining our operations, managing costs and innovating our menu, we generated a strong restaurant operating margin of 18.7% and net income of $1.0 million or $0.12 per share.”
Key Stats (on next page)…
Revenue increased 2.22% from $22.99 million in the previous quarter. EPS increased 20% from $0.10 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 $0.18 to a profit $0.17. For the current year, the average estimate has moved down from a profit of $0.59 to a profit of $0.42 over the last ninety days.
Stocks with improving earnings metrics are worthy of your extra attention. In fact, “E = Earnings Are Increasing Quarter-Over-Quarter” is a core component of our CHEAT SHEET investing framework for this very reason. Don’t waste another minute – click here and get our CHEAT SHEET stock picks now.
(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)