Back to top

Can The Cheesecake Factory (CAKE) Keep the Earnings Streak Alive This Quarter?

Read MoreHide Full Article

Looking for a stock that might be in a good position to beat earnings at its next report? Consider The Cheesecake Factory Incorporated (CAKE - Free Report) , a firm in the Retail-Food & Restaurants industry, which could be a great candidate for another beat.

This company has seen a nice streak of beating earnings estimates, especially when looking at the previous two reports. In fact, in these reports, CAKE has beaten estimates by at least 10% in both cases, suggesting it has a nice short-term history of crushing expectations.

Earnings in Focus

Two quarters ago, CAKE expected to post earnings of 60 cents per share, while it actually produced earnings of 68 cents per share, a beat of 13.3%. Meanwhile, for the most recent quarter, the company looked to deliver earnings of 70 cents per share, when it actually produced earnings of 78 cents per share instead, representing a 11.4% surprise.

CHEESECAKE FACT Price and EPS Surprise

Thanks in part to this history, recent estimates have been moving higher for Cheesecake Factory. In fact, the Earnings ESP for CAKE is positive, which is a great sign of a coming beat.

After all, the Zacks Earnings ESP compares the most accurate estimate to the broad consensus, looking to find stocks that have seen big revisions as of late, suggesting that analysts have recently become more bullish on the company’s earnings prospects. This is the case for CAKE as the firm currently has a Zacks Earnings ESP of 1.64%, so another beat could be around the corner.

This is particularly true when you consider that CAKE has a great Zacks Rank #2 (Buy) which can be a harbinger of outperformance and a signal for a strong earnings profile. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

When you add this solid Zacks Rank to a positive Earnings ESP, a positive earnings surprise happens nearly 70%of the time, so it seems pretty likely that CAKE could see another beat at its next report, especially if recent trends are any guide.

Confidential from Zacks

Beyond this Tale of the Tape, would you like to see Zacks' best recommendations that are not available to the public? Our Executive VP, Steve Reitmeister, knows when key trades are about to be triggered and which of our experts has the hottest hand. Click to see them now>>

Zacks Restaurant Recommendations: In addition to dining at these special places, you can feast on their stock shares. A Zacks Special Report spotlights 5 recent IPOs to watch plus 2 stocks that offer immediate promise in a booming sector. Download it free »

In-Depth Zacks Research for the Tickers Above

Normally $25 each - click below to receive one report FREE:

The Cheesecake Factory Incorporated (CAKE) - free report >>

More from Zacks Tale of the Tape

You May Like