Earnings Preview for Texas Roadhouse

On Thursday, February 18, Texas Roadhouse TXRH will release its latest earnings report. Here is Benzinga's outlook for the company.

What Are Earnings, Net Income, And Earnings Per Share?

Earnings and EPS are useful metrics of profitability. Total earnings also known as net income is equal to total revenue minus total expenses. Dividing net income by the total number of shares outstanding yields EPS.

Earnings And Revenue

Analysts covering Texas Roadhouse modeled for quarterly EPS of $0.49 on revenue of $679.08 million. In the same quarter last year, Texas Roadhouse announced EPS of $0.61 on revenue of $725.24 million.

Why Analyst Estimates And Earnings Surprises Are Important

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.

The Wall Street consensus estimate for earnings would represent a 19.67% decrease for the company. Revenue would have fallen 6.36% from the same quarter last year. Here is how the company's reported EPS has compared to analyst estimates in the past:

Stock Performance

Shares of Texas Roadhouse were trading at $85.78 as of February 16. Over the last 52-week period, shares are up 27.2%. Given that these returns are generally positive, long-term shareholders can be satisfied going into this earnings release.

Do not be surprised to see the stock move on comments made during its conference call. Texas Roadhouse is scheduled to hold the call at 17:00:00 ET and can be accessed here.