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Earnings Update: Here's Why Analysts Just Lifted Their Cracker Barrel Old Country Store, Inc. (NASDAQ:CBRL) Price Target To US$117

Shareholders of Cracker Barrel Old Country Store, Inc. (NASDAQ:CBRL) will be pleased this week, given that the stock price is up 17% to US$126 following its latest quarterly results. Revenues were in line with expectations, at US$433m, while statutory losses ballooned to US$6.81 per share. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

Check out our latest analysis for Cracker Barrel Old Country Store

NasdaqGS:CBRL Past and Future Earnings June 5th 2020
NasdaqGS:CBRL Past and Future Earnings June 5th 2020

Taking into account the latest results, Cracker Barrel Old Country Store's nine analysts currently expect revenues in 2021 to be US$2.77b, approximately in line with the last 12 months. Per-share earnings are expected to bounce 1503% to US$5.01. In the lead-up to this report, the analysts had been modelling revenues of US$2.71b and earnings per share (EPS) of US$3.83 in 2021. So it seems there's been a definite increase in optimism about Cracker Barrel Old Country Store's future following the latest results, with a massive increase in the earnings per share forecasts in particular.

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With these upgrades, we're not surprised to see that the analysts have lifted their price target 9.6% to US$117 per share. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. There are some variant perceptions on Cracker Barrel Old Country Store, with the most bullish analyst valuing it at US$133 and the most bearish at US$100.00 per share. Still, with such a tight range of estimates, it suggeststhe analysts have a pretty good idea of what they think the company is worth.

Of course, another way to look at these forecasts is to place them into context against the industry itself. These estimates imply that sales are expected to slow, with a forecast revenue decline of 1.7%, a significant reduction from annual growth of 1.5% over the last five years. Compare this with our data, which suggests that other companies in the same industry are, in aggregate, expected to see their revenue grow 16% next year. It's pretty clear that Cracker Barrel Old Country Store's revenues are expected to perform substantially worse than the wider industry.

The Bottom Line

The most important thing here is that the analysts upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards Cracker Barrel Old Country Store following these results. They also upgraded their revenue estimates for next year, even though sales are expected to grow slower than the wider industry. We note an upgrade to the price target, suggesting that the analysts believes the intrinsic value of the business is likely to improve over time.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. At Simply Wall St, we have a full range of analyst estimates for Cracker Barrel Old Country Store going out to 2023, and you can see them free on our platform here..

We don't want to rain on the parade too much, but we did also find 4 warning signs for Cracker Barrel Old Country Store that you need to be mindful of.

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This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Thank you for reading.