Market Overview

Raising The Bar With Jack In The Box: What To Expect From Earnings

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Jack in the Box Inc. (NASDAQ: JACK) is scheduled to report its second quarter financial results after the market closes on Wednesday and, according to Estimize, expectations point towards a 30 percent year-over-year growth in earnings.

For the second quarter of 2015, the Street is modeling consensus earnings of $0.66 per share on revenue of $355.39 million, while the crowd projects earnings of $0.68 per share on revenue of $355.95 million.

These figures imply a 30 percent increase in earnings when compared to the $0.51 per share reported last quarter, but a 30 percent decline from last quarter’s $0.93 per share.

The chart above features a history of earnings versus estimates for Jack in the Box. The company has tended to beat Wall Street’s estimates over the past couple of years.

A second graph shows how consensus has changed over time, and demonstrates that experts’ sentiment has become increasingly bullish as earnings got closer.

Raising The Bar

A couple of months ago, analysts at Wunderlich Securities reiterated a Buy rating on Jack in the Box, raising their price target for the stock from $100.00 to $110.00.

In the report, the firm noted, "Jack in the Box (JACK) continues to raise the bar vs. its slower-growing QSR peers, aided by its robust pipeline of craveable new food and concept refinements for both its Jack and Qdoba brands. Following Qdoba's especially strong Q1 (Jan.) SSS of 14%, management recently debuted its new Quesomole dip, a spicy new Queso that can be customized with Bacon Jalapeno bits and Guacamole, adding support to its raised FY15E SSS of 7.5%-9.5%. Following its Jack in the Box (JIB) brand's above-trend Q1 SSS of 4.4%, SSS climbed to over 10% in early Q2 aided by the intro of its new Buttery Jack burger. Supported by craveable new products like these, its accelerating Q2 trends, and confidence in management's plan, we are lifting our target to $110 from $100 and reiterate our Buy rating."

Latest Ratings for JACK

DateFirmActionFromTo
Feb 2019Wells FargoMaintainsOutperformOutperform
Oct 2018WedbushDowngradesOutperformNeutral
Oct 2018Gordon HaskettInitiates Coverage OnHold

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Posted-In: Estimize Wunderlich SecuritiesAnalyst Color Previews Crowdsourcing Analyst Ratings Trading Ideas General

 

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