Does The Street Have Papa John's International Figured Out?

Seth Jayson, The Motley Fool
Updated

Papa John's International (NAS: PZZA) is expected to report Q2 earnings around Aug. 6. 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 Papa John's International's revenues will increase 9.2% and EPS will increase 13.1%.

The average estimate for revenue is $348.0 million. On the bottom line, the average EPS estimate is $0.69.


Revenue details
 Last quarter, Papa John's International tallied revenue of $355.6 million. GAAP reported sales were 7.3% higher than the prior-year quarter's $331.3 million.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures are normalized by S&P Capital IQ and may vary to maintain comparability with normalized estimates.

EPS details
 Last quarter, EPS came in at $0.85. GAAP EPS of $0.85 for Q1 were 23% higher than the prior-year quarter's $0.69 per share.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures are normalized by S&P Capital IQ and may vary to maintain comparability with normalized estimates.

Recent performance
 For the preceding quarter, gross margin was 31.3%, 110 basis points worse than the prior-year quarter. Operating margin was 8.3%, 10 basis points better than the prior-year quarter. Net margin was 5.4%, 30 basis points better than the prior-year quarter.

Looking ahead

The full year's average estimate for revenue is $1.42 billion. The average EPS estimate is $3.00.

Investor sentiment
 The stock has a two-star rating (out of five) at Motley Fool CAPS, with 201 members out of 247 rating the stock outperform, and 46 members rating it underperform. Among 94 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 81 give Papa John's International a green thumbs-up, and 13 give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Papa John's International is hold, with an average price target of $59.20.

With hundreds of companies out there vying with Papa John's International for shoppers' dollars, strong brands matter, and they can provide growth for even boring, mature companies -- as long as they're the right ones. That's why we've compiled a special report on "3 American Companies Set to Dominate the World." Click here for instant access to this free report.

The article Does The Street Have Papa John's International Figured Out? 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 owns shares of Papa John's International. 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.

Copyright © 1995 - 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

Advertisement