Will Yum! Brands Beat These Analyst Estimates?
Yum! Brands (NYS: YUM) is expected to report Q2 earnings on July 10. Here's what Wall Street wants to see:
The 10-second takeaway
Comparing the upcoming quarter to the prior-year quarter, average analyst estimates predict Yum! Brands's revenues will shrink -7.9% and EPS will compress -19.4%.
The average estimate for revenue is $2.92 billion. On the bottom line, the average EPS estimate is $0.54.
Revenue details
Last quarter, Yum! Brands chalked up revenue of $2.54 billion. GAAP reported sales were 7.6% lower than the prior-year quarter's $2.74 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS details
Last quarter, non-GAAP EPS came in at $0.70. GAAP EPS of $0.72 for Q1 were 25% lower than the prior-year quarter's $0.96 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
Recent performance
For the preceding quarter, gross margin was 29.2%, 40 basis points worse than the prior-year quarter. Operating margin was 18.4%, 130 basis points worse than the prior-year quarter. Net margin was 13.3%, 340 basis points worse than the prior-year quarter.
Looking ahead
The full year's average estimate for revenue is $13.51 billion. The average EPS estimate is $3.07.
Investor sentiment
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 3,182 members out of 3,314 rating the stock outperform, and 132 members rating it underperform. Among 796 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 777 give Yum! Brands a green thumbs-up, and 19 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Yum! Brands is outperform, with an average price target of $71.30.
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The article Will Yum! Brands Beat These Analyst Estimates? originally appeared on Fool.com.
Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor ofMotley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
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