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Factors Setting the Tone for Wingstop's (WING) Q3 Earnings

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Wingstop Inc. (WING - Free Report) is scheduled to report third-quarter 2019 results on Oct 30, after the market opens. In the last reported quarter, the company’s earnings were in line with the Zacks Consensus Estimate.

How are Estimates Faring?

For the quarter to be reported, the Zacks Consensus Estimate for earnings per share has been stable at 17 cents over the past 30 days. However, this indicates a decrease of 19.1% from 21 cents reported in the year-ago quarter. Revenues are expected to be $49.52 million, suggesting a 29.5% increase from the year-ago reported figure of $38.25 million.

Wingstop Inc. Price and Consensus

Wingstop’s top line in the third quarter is likely to have benefited from various sales boosting strategies including robust delivery program, efficient marketing and promotions, along with increased focus on franchising. Moreover, higher royalty revenues and franchise fees, as well as increase in advertising fees and related income are likely to get reflected in the company’s third-quarter results.

Moreover, its partnership with DoorDash is likely to have driven digital sales in the quarter. However, increase in costs and higher net interest expenses are likely to have weighed on earnings.  

What the Zacks Model Unveils

Our proven model predicts an earnings beat for Wingstop this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat.

You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

It has an Earnings ESP of +5.62% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.

Other Stocks Poised to Beat Earnings Estimates

Here are some other stocks from the Zacks Retail space that investors may consider, as our model shows that these too have the right combination of elements to deliver an earnings beat in third-quarter 2019.

Boot Barn Holdings, Inc. (BOOT - Free Report) has an Earnings ESP of +4.13% and a Zacks Rank #1.

Dunkin' Brands Group, Inc. has an Earnings ESP of +2.15% and a Zacks Rank #2.

Sonic Automotive, Inc. (SAH - Free Report) has an Earnings ESP of +4.93% and a Zacks Rank #2.

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Wingstop Inc. (WING) - free report >>

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