DineEquity's (DIN) Q1 Earnings: What To Expect This Time?
Zacks Investment Research | May 01, 2016 10:41PM ET
DineEquity, Inc. (NYSE:DIN) is set to report first quarter 2016 results on May 5, before the opening bell. Last quarter, the company posted a positive earnings surprise of 18.66%.
In fact, the company has surpassed earnings estimates in the trailing four quarters with an average positive surprise of 6.65%.
Let’s see how things are shaping up for this announcement.
Factors to Consider
DineEquity’s earnings and revenues have been outperforming the Zacks Consensus Estimate since the beginning of 2014. While Applebee’s posted positive comps in six of the last seven quarters, IHOP has posted positive comps for 11 consecutive quarters.
The upside reflects sales initiatives — the three pillar strategy — undertaken by the company. The company focuses on food and menu (the first pillar), which includes launching menu designs, diet menu and appetizers platform. The company remains focused on efforts to improve guest experience — the second pillar — like working on speed, consistency and remodeling certain outlets. Also, marketing — the third pillar — and advertising campaigns are carried out with an aim to pull traffic. These efforts are expected to continue to aid comps in the to-be-reported quarter.
Though the company is looking to build a new prototype in order to reduce costs, higher cost of revenues due to an increase in Franchise and restaurant expenses would keep profits under pressure. Also, an increase in general and administrative expenses and costs related to sales initiatives would dent profits further.
Earnings Whispers
Our proven model does not conclusively show that DineEquity is likely to beat earnings this quarter. This is because a stock needs to have both a positive Zacks Investment Research
Get The News You Want
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.