Market Overview

Preview: Arcos Dorados Holdings's Earnings


On Wednesday, November 11, Arcos Dorados Holdings (NYSE: ARCO) will release its latest earnings report. Decipher the announcement with Benzinga's help.

Net Income, Earnings, And Earnings Per Share

Earnings and especially earnings per share (EPS) are useful measures of a company's profitability. Total earnings, which is also referred to as net income, equals total revenue minus total expenses. EPS equals to net income divided by the number of shares outstanding.

Earnings And Revenue

Analysts covering Arcos Dorados Holdings have modeled for quarterly EPS loss of $0.17 on revenue of $437.50 million. In the same quarter last year, Arcos Dorados Holdings reported EPS of $0.12 on revenue of $749.97 million.

What Are Analyst Estimates And Earnings Surprises, And Why Do They Matter?

Wall Street analysts who study this company will publish analyst estimates of revenue and EPS. The averages of all analyst EPS and revenue estimates are called the "consensus estimates"; these consensus estimates can have a significant effect on a company's performance during an earnings release. When a company posts earnings or revenue above or below a consensus estimate, it has posted an "earnings surprise", which can really move a stock depending on the difference between actual and estimated values.

If the company were to post earnings in line with the consensus estimate when it reports Wednesday, EPS would be down 241.67%. Sales would be down 41.66% from the same quarter last year. Here is how the company's reported EPS has stacked up against analyst estimates in the past:

Quarter Q2 2020 Q1 2020 Q4 2020 Q3 2019
EPS Estimate -0.37 0.04 0.08 0.08
EPS Actual -0.44 -0.26 0.18 0.12
Revenue Estimate 248.33 M 564.00 M 742.50 M 718.33 M
Revenue Actual 292.52 M 617.50 M 752.33 M 749.97 M

Stock Performance

Shares of Arcos Dorados Holdings were trading at $4.65 as of November 09. Over the last 52-week period, shares are down 39.75%. Given that these returns are generally negative, long-term shareholders are probably a little upset going into this earnings release.

Do not be surprised to see the stock move on comments made during its conference call. Arcos Dorados Holdings is scheduled to hold the call at 10:00:00 ET and can be accessed here.


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Posted-In: Earnings