Earnings Outlook For Cheesecake Factory


Cheesecake Factory CAKE announces its next round of earnings this Wednesday, April 28. Here is Benzinga's everything-that-matters guide for this Wednesday's Q1 earnings announcement.

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

Sell-side analysts are expecting Cheesecake Factory's loss per share to be near $0.06 on sales of $604.21 million. Cheesecake Factory earnings in the same period a year ago was $0.04 per share. Quarterly sales came in at $615.11 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 analyst consensus estimate would represent a 250.0% decline in the company's EPS figure. Sales would be down 1.77% from the year-ago period. Cheesecake Factory's reported EPS has stacked up against analyst estimates in the past like this:

Quarter Q4 2021 Q3 2020 Q2 2020 Q1 2020
EPS Estimate -0.04 -0.42 -1.09 0.30
EPS Actual -0.32 -0.33 -0.87 0.04
Revenue Estimate 602.74 M 487.83 M 304.23 M 890.25 M
Revenue Actual 554.55 M 517.72 M 295.85 M 615.11 M

Stock Performance

Over the last 52-week period, shares are up 141.3%. Given that these returns are generally positive, long-term shareholders can relax going into this earnings release. Long-term shareholders are already enjoying 12-month gains prior to the announcement.

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

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