Darden Restaurants Earnings Are on Deck

Darden Restaurants (NYS: DRI) is expected to report Q4 earnings around June 18. 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 Darden Restaurants's revenues will increase 9.4% and EPS will wither -9.6%.

The average estimate for revenue is $2.26 billion. On the bottom line, the average EPS estimate is $1.04.


Revenue details
Last quarter, Darden Restaurants booked revenue of $2.26 billion. GAAP reported sales were 4.6% higher than the prior-year quarter's $2.16 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, EPS came in at $1.02. GAAP EPS of $1.02 for Q3 were 18% lower than the prior-year quarter's $1.25 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 22.4%, 230 basis points worse than the prior-year quarter. Operating margin was 9.1%, 230 basis points worse than the prior-year quarter. Net margin was 6.0%, 160 basis points worse than the prior-year quarter.

Looking ahead

The full year's average estimate for revenue is $8.52 billion. The average EPS estimate is $3.18.

Investor sentiment
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 404 members out of 527 rating the stock outperform, and 123 members rating it underperform. Among 151 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 131 give Darden Restaurants a green thumbs-up, and 20 give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Darden Restaurants is hold, with an average price target of $50.23.

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The article Darden Restaurants Earnings Are on Deck 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 Darden Restaurants. 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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