money Factors Setting the Tone for Brinker's (EAT) Q4 Earnings
Brinker International, Inc. EAT is scheduled to report fourth-quarter fiscal 2020 results on Aug 12. In the last-reported quarter, the company delivered an earnings surprise of 166.7%.
Q4 Estimates
The Zacks Consensus Estimate for fiscal fourth-quarter bottom line is pegged at a loss of $1.47 per share, against an earnings of $1.36 in the year-ago quarter. For quarterly revenues, the consensus mark is pegged at $553.2 million, suggesting a decline of 33.7% from the year-earlier figure.
Factors to Note
The coronavirus pandemic is expected to have materially affected Brinker’s fiscal fourth-quarter performance. In June, the company provided operation update. Comps at Chili's for the week ended Apr 29, May 6, May 13, May 20, May 27 and Jun 3 declined 42.1%, 31.6%, 28.5%, 25.2%, 22.5% and 18.9% compared with the same period in the prior-year week, respectively.
Comps at Maggiano's for the week ended Apr 29, May 6, May 13, May 20, May 27 and Jun 3 decreased 72.1%, 73.8%, 61.4%, 70.8%, 66.4% and 69.9%, respectively. Moreover, comps at company-owned were down 45.9%, 37.1%, 33.4%, 31.7%, 28.3% and 25.6%, for the week ended Apr 29, May 6, May 13, May 20, May 27 and Jun 3, respectively.
However, continuous focus on menu innovation, digital enhancement, advertisement campaigns and introduction of better service platforms is likely to get reflected in the fiscal fourth-quarter results. Further, Maggiano’s partnership with DoorDash might have contributed to the to-be-reported quarter’s performance.
Brinker International, Inc. Price and EPS Surprise
Brinker International, Inc. price-eps-surprise | Brinker International, Inc. Quote
What Does the Zacks Model Say
Our proven model does not conclusively predict an earnings beat for Brinker 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. But that’s not the case here. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Brinker International, which shares space with Jack in the Box Inc. JACK, has an Earnings ESP of +2.31% and a Zacks Rank #5 (Strong Sell).
Stocks Poised to Beat Earnings Estimates
Here are some stocks that investors may consider as our model shows that these have the right combination of elements to come up with an earnings beat this quarter.
Malibu Boats, Inc. MBUU has an Earnings ESP of +2.04% and a Zacks Rank of 2. You can see the complete list of today’s Zacks #1 Rank stocks here.
Madison Square Garden Entertainment Corp. MSGE has an Earnings ESP of +16.15% and a Zacks Rank of 3.
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