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Habit Restaurants (HABT) Q3 Earnings: What's in Store?
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The Habit Restaurants, Inc. is set to report third-quarter 2016 results on Nov 2, after the market closes.
Last quarter, the casual restaurant company posted a negative earnings surprise of 10%. However, before that the company surpassed/met the Zacks Consensus Estimate in the trailing three quarters, with an average beat of 8.75%.
Let’s see what is in store this quarter.
Factors at Play
Habit Restaurants offers specialty sandwiches, fresh salads, shakes and malts. The second quarter marked the company’s 50th consecutive year-over-year growth in comps. By using high quality Limited Time Offers, targeted digital strategies and innovative media partnerships, together with great operational execution, Habit Restaurants expects its same-store sales growth to continue.
Further, the company’s initiative to reduce the average cook time by five to seven minutes from order placement to delivery, is helping it cater to customer traffic, especially during peak hours. The company is also cashing in on the rising popularity of the niche burger segment.
However, increases in labor and related expenses – mainly due to a spike in wages across most markets – are likely to hurt margins in the third quarter. Moreover, a challenging sales environment in the restaurant space could hurt revenues.
Our proven model does not conclusively show that Habit Restaurants is likely to beat earnings this quarter. 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. That is not the case here as you will see below. Please check our Earnings ESP Filter that enables you to find stocks that are expected to come out with earnings surprises.
Zacks ESP: The Earnings ESP for Habit Restaurants is 0.00%. This is because both the Most Accurate estimate and the Zacks Consensus Estimate stand at 6 cents.
Zacks Rank: Habit Restaurants holds a Zacks Rank #3. This when combined with a 0.00% ESP makes earnings prediction difficult. We caution against stocks with a Zacks Rank #4 or 5 (Strong Sell) going into the earnings announcement, especially when the company is seeing negative estimate revisions.
Stocks to Consider
Here are some restaurant stocks that investors may consider, as our model shows that they have the right combination of elements to post an earnings beat this quarter:
Fogo de Chao, Inc. has an Earnings ESP of +13.33% and a Zacks Rank #3.
DineEquity, Inc. (DIN - Free Report) has an Earnings ESP of +2.16% and a Zacks Rank #3.
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Habit Restaurants (HABT) Q3 Earnings: What's in Store?
The Habit Restaurants, Inc. is set to report third-quarter 2016 results on Nov 2, after the market closes.
Last quarter, the casual restaurant company posted a negative earnings surprise of 10%. However, before that the company surpassed/met the Zacks Consensus Estimate in the trailing three quarters, with an average beat of 8.75%.
Let’s see what is in store this quarter.
Factors at Play
Habit Restaurants offers specialty sandwiches, fresh salads, shakes and malts. The second quarter marked the company’s 50th consecutive year-over-year growth in comps. By using high quality Limited Time Offers, targeted digital strategies and innovative media partnerships, together with great operational execution, Habit Restaurants expects its same-store sales growth to continue.
Further, the company’s initiative to reduce the average cook time by five to seven minutes from order placement to delivery, is helping it cater to customer traffic, especially during peak hours. The company is also cashing in on the rising popularity of the niche burger segment.
However, increases in labor and related expenses – mainly due to a spike in wages across most markets – are likely to hurt margins in the third quarter. Moreover, a challenging sales environment in the restaurant space could hurt revenues.
HABIT RESTRNTS Price and EPS Surprise
HABIT RESTRNTS Price and EPS Surprise | HABIT RESTRNTS Quote
Earnings Whispers
Our proven model does not conclusively show that Habit Restaurants is likely to beat earnings this quarter. 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. That is not the case here as you will see below. Please check our Earnings ESP Filter that enables you to find stocks that are expected to come out with earnings surprises.
Zacks ESP: The Earnings ESP for Habit Restaurants is 0.00%. This is because both the Most Accurate estimate and the Zacks Consensus Estimate stand at 6 cents.
Zacks Rank: Habit Restaurants holds a Zacks Rank #3. This when combined with a 0.00% ESP makes earnings prediction difficult.
We caution against stocks with a Zacks Rank #4 or 5 (Strong Sell) going into the earnings announcement, especially when the company is seeing negative estimate revisions.
Stocks to Consider
Here are some restaurant stocks that investors may consider, as our model shows that they have the right combination of elements to post an earnings beat this quarter:
The Wendy’s Company (WEN - Free Report) has an Earnings ESP of +10.00% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
Fogo de Chao, Inc. has an Earnings ESP of +13.33% and a Zacks Rank #3.
DineEquity, Inc. (DIN - Free Report) has an Earnings ESP of +2.16% and a Zacks Rank #3.
Confidential from Zacks
Beyond this Analyst Blog, 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>>