What Does Wall Street See for Arcos Dorados Holdings's Q2?

Seth Jayson, The Motley Fool
Updated

Arcos Dorados Holdings (NYS: ARCO) 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 Arcos Dorados Holdings's revenues will increase 10.3% and EPS will grow 16.7%.

The average estimate for revenue is $997.5 million. On the bottom line, the average EPS estimate is $0.07.


Revenue details
 Last quarter, Arcos Dorados Holdings notched revenue of $976.9 million. GAAP reported sales were 6.0% higher than the prior-year quarter's $921.6 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, non-GAAP EPS came in at $0.04. GAAP EPS were -$0.03 for Q1 against $0.12 per share for the prior-year quarter.

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 12.3%, 230 basis points worse than the prior-year quarter. Operating margin was 3.8%, 220 basis points worse than the prior-year quarter. Net margin was -0.7%, 350 basis points worse than the prior-year quarter.

Looking ahead

The full year's average estimate for revenue is $4.13 billion. The average EPS estimate is $0.38.

Investor sentiment
 The stock has a five-star rating (out of five) at Motley Fool CAPS, with 630 members out of 645 rating the stock outperform, and 15 members rating it underperform. Among 169 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 166 give Arcos Dorados Holdings a green thumbs-up, and three give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Arcos Dorados Holdings is hold, with an average price target of $14.71.

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The article What Does Wall Street See for Arcos Dorados Holdings's Q2? 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 Arcos Dorados. 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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