Jack in the Box (JACK) to Post Q4 Earnings: What's in Store?
Jack in the Box Inc. JACK is scheduled to report fourth-quarter fiscal 2023 results on Nov 21. In the last reported quarter, the company’s earnings surpassed the Zacks Consensus Estimate by 9%.
Q4 Expectations
The Zacks Consensus Estimate for earnings is pegged at $1.15 per share, lower than $1.33 in the prior-year quarter. Over the past 30 days, JACK’s earnings estimates have remained stable. The consensus mark for revenues is pegged at $367.2 million, suggesting a decline of 8.7% from the year-ago quarter.
Factors to Note
Jack in the Box’s fiscal fourth-quarter performance is likely to have hurt by dismal restaurant sales, and franchise royalties & other revenues. Our model predicts restaurant sales, and franchise royalties & other revenues to decrease 2.9% and 9.3% year over year to $208.4 million and $51.6 million, respectively. We expect franchise rental revenues to decline 28.6% year over year to $57.6 million.
However, digital initiatives, expansion efforts and reimaging program are likely to bode well for the company. Also, focus on the barbell menu strategy and elevated market pricing model are likely to have aided its performance in the to-be-reported quarter. It continues to benefit from average check growth.
Rising commodity inflation, advertising cost and wage inflation are likely to have affected the company’s bottom line in the quarter under discussion.
What Does the Zacks Model Say?
Our proven model doesn’t conclusively predict an earnings beat for Jack in the Box this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat.
You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Jack in the Box has an Earnings ESP of +2.12% and a Zacks Rank #4 (Sell).
Stocks With Favorable Combination
Here we present a few stocks you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat this season.
Costco COST currently has an Earnings ESP of +4.26% and a Zacks Rank of 2. The Zacks Consensus Estimate for first-quarter fiscal 2024 earnings per share (EPS) of $3.43 suggests a rise of 10.7% from a year ago. You can see the complete list of today’s Zacks #1 Rank stocks here.
The consensus estimate for revenues is pegged at $57.69 billion, hinting at an increase of 6% from the prior-year quarter. COST has a trailing four-quarter earnings surprise of 2.1%, on average.
Ross Stores ROST currently has an Earnings ESP of +2.08% and a Zacks Rank #2. The Zacks Consensus Estimate for third-quarter fiscal 2023 EPS of $1.21 indicates 21% growth from the year-ago levels.
The consensus mark for revenues is pegged at $4.83 billion, implying a 5.8% jump from the prior-year figure. ROST has a trailing four-quarter earnings surprise of 11.4%, on average.
Walmart WMT currently has an Earnings ESP of +0.63% and carries a Zacks Rank #2. The Zacks Consensus Estimate for third-quarter fiscal 2024 EPS of $1.51 suggests a 0.7% gain from the year-ago quarter.
The consensus estimate for revenues is pegged at $159.2 billion, which indicates a climb of 4.2% from the prior-year number. WMT has a trailing four-quarter earnings surprise of 11.6%, on average.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Janus Henderson Sustainable & Impact Core Bond ETF (JACK) : Free Stock Analysis Report
Walmart Inc. (WMT) : Free Stock Analysis Report
Costco Wholesale Corporation (COST) : Free Stock Analysis Report
Ross Stores, Inc. (ROST) : Free Stock Analysis Report
