Market Overview

Will El Pollo LoCo's Earnings Fly High Enough?


Shares of El Pollo LoCo Holdings Inc (NASDAQ: LOCO) were up about 2 percent on Thursday, ahead of the company’s first quarter financial results after the bell.

According to Estimize, expectations point towards pretty much flat year-over-year earnings. The Street is modeling consensus earnings of $0.17 per share on revenue of $88.39 million, while the crowd projects earnings of $0.19 per share on revenue of $89.7 million.

These figures compare to the earnings of $0.18 per share on revenue of $81.43 million reported in the first quarter of 2014. However, these estimates do imply some quarter-over-quarter growth, since the company registered earnings of $0.14 on revenue of $89.97 million in the latest quarter.

The graph below illustrates the evolution of estimates over time. After experiencing a small surge in January, the Street’s sentiment remained flat. The crowd became slightly more bullish on Thursday.

What Analysts Think

A few research firms have weighed in on El Pollo LoCo. William Blair reiterated and Outperform rating on the stock; Zacks downgraded it from Buy to Hold; Jefferies did the opposite (upgraded it from Hold to Buy); and Baird boosted its rating from Neutral to Outperform. The last two firms also set respective price targets of $27 and $34.

In a recent article, analysts at Zacks also point out a few factors to consider ahead of El Pollo LoCo’s earnings. The company started trading in July, 2014, and has reported results for three quarters since, managing to retrieve positive comps in all of them. “The company’s fresh handcrafted Mexican inspired cuisine has helped to increase average check size and traffic. Menu innovation and limited time offers have been contributing to comps.”

Latest Ratings for LOCO

Nov 2018BairdMaintainsNeutralNeutral
Oct 2018GuggenheimMaintainsBuyBuy
Mar 2018Morgan StanleyMaintainsEqual-WeightEqual-Weight

View More Analyst Ratings for LOCO
View the Latest Analyst Ratings

Posted-In: Baird EstimizeAnalyst Color Previews Crowdsourcing Analyst Ratings Trading Ideas General


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