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Noodles & Company (NDLS) to Post Q4 Earnings: What's in Store?

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Noodles & Company (NDLS - Free Report) 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

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 - Free Report) 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 - Free Report) has an Earnings ESP of +1.46% and a Zacks Rank #2.

The Michaels Companies, Inc. has an Earnings ESP of +0.70% and a Zacks Rank #3.

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