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What's in Store for Habit Restaurants (HABT) Q4 Earnings?

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The Habit Restaurants, Inc. HABT is likely to witness decline in the bottom line, when it reports fourth-quarter 2019 results. In the last reported quarter, the company’s earnings surpassed the Zacks Consensus Estimate by 500%.

Q4 Expectations

The Zacks Consensus Estimate for fourth-quarter earnings is pegged at 2 cents, lower than 3 cents reported in the prior-year quarter. In the past 30 days, the company’s earnings estimates were revised upwards by a couple of cents. Moreover, the Zacks Consensus Estimate for revenues is $121 million, suggesting growth of 17.8% from the prior-year reported figure.

Factors at Play

Habit Restaurants’ differentiated brand positioning, successful marketing and culinary innovation are likely to have driven the fourth-quarter performance. We believe that excellent operational execution, high quality limited time offers, targeted digital strategies and innovative media partnerships might have contributed to the company’s traffic in the fourth quarter and consequently comps.

However, higher costs are likely to have affected the to-be-reported quarter’s performance. Further, pre-opening costs are likely to have weighed on the company’s fourth-quarter margin.

The Habit Restaurants, Inc. Price and EPS Surprise

What Does the Zacks Model Say

Our proven model does not conclusively predict an earnings beat for Habit Restaurants this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that's not the case here.

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

Habit Restaurants has a Zacks Rank #2 and an Earnings ESP of 0.00%.

Stocks Poised to Beat Earnings Estimates

Here are some other companies that investors may consider as our model shows that these have the right combination of elements to post earnings beat this season:

Lululemon Athletica Inc. LULU has an Earnings ESP of +0.27% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.

G-III Apparel Group, LTD. GIII has an Earnings ESP of +2.71% and a Zacks Rank #2.

Costco Wholesale Corporation COST has an Earnings ESP of +0.20% and a Zacks Rank #2.

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