Brinker International (EAT) Q2 Earnings: What To Expect
Casual restaurant chain Brinker International (NYSE:EAT) will be reporting results tomorrow before market open. Here's what to expect.
Last quarter Brinker International reported revenues of $1.01 billion, up 6% year on year, in line with analyst expectations. It was a mixed quarter for the company, with same store sales and revenue roughly in line with expectations, showing that there were no surprises on the topline. EPS blew past expectations this quarter. On the other hand, its gross margin sadly missed analysts' expectations.
Is Brinker International buy or sell heading into the earnings? Read our full analysis here, it's free.
This quarter analysts are expecting Brinker International's revenue to grow 5.7% year on year to $1.08 billion, slowing down from the 10.1% year-over-year increase in revenue the company had recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.95 per share.
The analysts covering the company have been growing increasingly bearish about the business heading into the earnings, with revenue estimates seeing seven downwards revisions over the last thirty days.The company only missed Wall St's revenue estimates once over the last two years, and has on average exceeded top line expectations by 0.8%.
Looking at Brinker International's peers in the restaurants segment, only Kura Sushi has so far reported results, delivering top-line growth of 30.9% year on year, and beating analyst estimates by 0.1%. The stock traded down 4.6% on the results.
Read our full analysis of Kura Sushi's earnings results here.
Investors in the restaurants segment have had steady hands going into the earnings, with the stocks up on average 1.4% over the last month. Brinker International is down 3.3% during the same time, and is heading into the earnings with analyst price target of $43.9, compared to share price of $40.7.
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The author has no position in any of the stocks mentioned.
