Noodles & Company NDLS is scheduled to report fourth-quarter 2018 results on Mar 14. In the last reported quarter, the company reported in-line earnings. Notably, the bottom line missed the Zacks Consensus Estimate in two of the trailing four quarters.
How are Estimates Faring?
The Zacks Consensus Estimate for fourth-quarter earnings is pegged at 2 cents, which remained flat over the past 60 days. In the prior-year quarter, the company had reported earnings of 1 cent. Revenues are expected to come in at $113.8 million, up 0.9% year over year.
Factors at Play
Noodles & Company’s sales building initiatives like streamlining of menu and innovation, effective marketing strategy, increased focus on the off-premise business and investments in technology-driven initiatives like digital ordering are likely to drive fourth-quarter 2018 results.
However, high costs from restaurant operation and increased labor expenses might have been a potential threat to Noodles & Company’s earnings in the quarter to be reported. Meanwhile, the company has been undertaking the task of closing underperforming restaurants, which will lead to margin expansion.
These apart, Noodles & Company had stated that it expects operating expenses to increase in the fourth quarter due to a rise in marketing expenses and costs related to third-party payment.
Noodles & Company Price and EPS Surprise
Noodles & Company Price and EPS Surprise | Noodles & Company Quote
What Does the Zacks Model Unveil?
Our proven model does not show that Noodles & Company is likely to beat earnings estimates in fourth-quarter 2018. This is because a stock needs to have both — a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) — for this to happen. Zacks Rank #4 (Sell) or 5 (Strong Sell) stocks are best avoided, especially if they have a negative Earnings ESP. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Noodles & Company has an Earnings ESP of 0.00% and a Zacks Rank #3.
Stocks to Consider
Here are some companies in the Retail- Wholesale space, which per our model have the right combination of elements to post an earnings beat in their respective quarters.
Dave & Buster's Entertainment, Inc. PLAY has an Earnings ESP of +1.32% and a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.
Darden Restaurants, Inc. DRI has an Earnings ESP of +1.46% and a Zacks Rank #2.
The Michaels Companies, Inc. MIK has an Earnings ESP of +0.70% and a Zacks Rank #3.
Zacks' Top 10 Stocks for 2019
In addition to the stocks discussed above, wouldn't you like to know about our 10 finest buy-and-holds for the year?
From more than 4,000 companies covered by the Zacks Rank, these 10 were picked by a process that consistently beats the market. Even during 2018 while the market dropped -5.2%, our Top 10s were up well into double-digits. And during bullish 2012 – 2017, they soared far above the market's +126.3%, reaching +181.9%.
This year, the portfolio features a player that thrives on volatility, an AI comer, and a dynamic tech company that helps doctors deliver better patient outcomes at lower costs.
See Stocks Today >>
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
Darden Restaurants, Inc. (DRI) : Free Stock Analysis Report
Noodles & Company (NDLS) : Free Stock Analysis Report
Dave & Buster's Entertainment, Inc. (PLAY) : Free Stock Analysis Report
The Michaels Companies, Inc. (MIK) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research