Bloomin’ Brands disappoints investors with low 2Q14 earnings
A must-read 2Q14 earnings overview of Bloomin' Brands (Part 12 of 13)
Investors disappointed with earnings
Bloomin’ Brands (BLMN) reported its 2Q14 earnings on August 5 before the market opened. Shares began trading at $17.25. This was down 13% from the previous day’s close of $19.81. The day’s high and low were $17.50 and $15.01, respectively.
Share volume was ~16 million shares compared to the 50-day average daily volume of ~1.6 million shares. Bloomin’ Brands closed 24% down at $15.06 from the previous day’s close, according to the NASDAQ.
Upgrades and downgrades
On August 6, JP Morgan maintained its “overweight” rating for Bloomin’ Brands with a price target of $18, which was lowered from the previous target of $25.
Jefferies also lowered its price target to $18 from its previous target of $26 on the same date.
As of September 20, 11 analysts had a buy rating, three had a hold rating, and one had a sell rating on Bloomin’ Brands with a consensus target price of $21.80.
3Q14 estimates
The Wall Street consensus estimates for Bloomin’ Brands in Q3 are as follows.
Adjusted earnings per share estimates are $0.07.
Revenue estimates are at $1 billion.
Estimates for operating profits are $32 million.
Adjusted net income estimates are $10 million.
Forecasts for Q4 earnings will likely be announced on November 11, 2014.
Next we will cover Bloomin’ Brands year-to-date returns in comparison to its competitors like Brinker International (EAT), Darden Restaurants (DRI), and The Cheesecake Factory (CAKE). These companies are a part of ETF Vanguard Total Stock Market (VTI).
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