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BJ's Restaurants (BJRI) Up 6.9% Since Earnings Report: Can It Continue?
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It has been about a month since the last earnings report for BJ's Restaurants, Inc. (BJRI - Free Report) . Shares have added about 6.9% in that time frame, outperforming the market.
Will the recent positive trend continue leading up to the stock's next earnings release, or is it due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts.
BJ’s Restaurants reported better-than-expected first-quarter 2017 results with both earnings and revenues surpassing the Zacks Consensus Estimate.
Earnings and Revenue Discussion
Adjusted earnings of $0.42 per share surpassed the Zacks Consensus Estimate of $0.34 by 23.5%. However, earnings decreased 10.6% from the year-ago figure of $0.47, primarily due to higher revenues.
Revenues of $257.8 million were up nearly 6% year over year owing to new restaurant growth. Moreover, revenues topped the consensus mark of $256.1 million by 0.7%.
Inside the Headline Numbers
Comps in the quarter declined 1.3% in comparison with the prior-quarter comps decrease of 2.2 % and the year-ago quarter comps growth of 0.6%.
Restaurant level margin was 17.9%, down 220 basis points (bps) year over year. Moreover, operating margin decreased 170 bps to 5%. Notably, a 40 bps decrease in general and administrative expenses, as a percentage of total revenue, was more than offset by 50 bps and 70 bps decline in cost of sales as well as occupancy and operating costs, respectively. Additionally, labor and benefits charges increased 100 bps, thereby putting pressure on the operating margin.
How Have Estimates Been Moving Since Then?
Following the release, investors have witnessed a upward trend in fresh estimates. There has been one revision higher for the current quarter.
At this time, the stock has a great Growth Score of 'A', though it is lagging a bit on the momentum front with a 'B'. Charting a somewhat similar path, the stock was allocated a grade of 'A' on the value side, putting it in the top quintile for this investment strategy.
Overall, the stock has an aggregate VGM Score of 'A'. If you aren't focused on one strategy, this score is the one you should be interested in.
Based on our scores, the stock is more suitable for value and growth investors than those looking for momentum.
Outlook
Estimates have been trending upward for the stock. The magnitude of these revisions also looks promising. The stock has a Zacks Rank #3 (Hold). We are looking for an inline return from the stock in the next few months.
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BJ's Restaurants (BJRI) Up 6.9% Since Earnings Report: Can It Continue?
It has been about a month since the last earnings report for BJ's Restaurants, Inc. (BJRI - Free Report) . Shares have added about 6.9% in that time frame, outperforming the market.
Will the recent positive trend continue leading up to the stock's next earnings release, or is it due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts.
BJ's Restaurants Tops Q1 Earnings & Revenue Estimates
BJ’s Restaurants reported better-than-expected first-quarter 2017 results with both earnings and revenues surpassing the Zacks Consensus Estimate.
Earnings and Revenue Discussion
Adjusted earnings of $0.42 per share surpassed the Zacks Consensus Estimate of $0.34 by 23.5%. However, earnings decreased 10.6% from the year-ago figure of $0.47, primarily due to higher revenues.
Revenues of $257.8 million were up nearly 6% year over year owing to new restaurant growth. Moreover, revenues topped the consensus mark of $256.1 million by 0.7%.
Inside the Headline Numbers
Comps in the quarter declined 1.3% in comparison with the prior-quarter comps decrease of 2.2 % and the year-ago quarter comps growth of 0.6%.
Restaurant level margin was 17.9%, down 220 basis points (bps) year over year. Moreover, operating margin decreased 170 bps to 5%. Notably, a 40 bps decrease in general and administrative expenses, as a percentage of total revenue, was more than offset by 50 bps and 70 bps decline in cost of sales as well as occupancy and operating costs, respectively. Additionally, labor and benefits charges increased 100 bps, thereby putting pressure on the operating margin.
How Have Estimates Been Moving Since Then?
Following the release, investors have witnessed a upward trend in fresh estimates. There has been one revision higher for the current quarter.
BJ's Restaurants, Inc. Price and Consensus
BJ's Restaurants, Inc. Price and Consensus | BJ's Restaurants, Inc. Quote
VGM Scores
At this time, the stock has a great Growth Score of 'A', though it is lagging a bit on the momentum front with a 'B'. Charting a somewhat similar path, the stock was allocated a grade of 'A' on the value side, putting it in the top quintile for this investment strategy.
Overall, the stock has an aggregate VGM Score of 'A'. If you aren't focused on one strategy, this score is the one you should be interested in.
Based on our scores, the stock is more suitable for value and growth investors than those looking for momentum.
Outlook
Estimates have been trending upward for the stock. The magnitude of these revisions also looks promising. The stock has a Zacks Rank #3 (Hold). We are looking for an inline return from the stock in the next few months.