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.
Zacks' Top 10 Stocks for 2019
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From more than 4,000 companies covered by the Zacks Rank, these 10 were picked by a process that consistently beats the market. Even during 2018 while the market dropped -5.2%, our Top 10s were up well into double-digits. And during bullish 2012 – 2017, they soared far above the market's +126.3%, reaching +181.9%.
This year, the portfolio features a player that thrives on volatility, an AI comer, and a dynamic tech company that helps doctors deliver better patient outcomes at lower costs.
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From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
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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.
Zacks' Top 10 Stocks for 2019
In addition to the stocks discussed above, wouldn't you like to know about our 10 finest buy-and-holds for the year?
From more than 4,000 companies covered by the Zacks Rank, these 10 were picked by a process that consistently beats the market. Even during 2018 while the market dropped -5.2%, our Top 10s were up well into double-digits. And during bullish 2012 – 2017, they soared far above the market's +126.3%, reaching +181.9%.
This year, the portfolio features a player that thrives on volatility, an AI comer, and a dynamic tech company that helps doctors deliver better patient outcomes at lower costs.
See Stocks Today >>
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
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