BJ’s Restaurants, Inc. (NasdaqGS:BJRI) is scheduled to report Q3 earnings results after markets close for trading on October 22, 2020.
The company is expected to report earnings of -$0.77/share on revenue of $180.4 million. The consensus earnings per share (EPS) of -$0.77/share is based on a poll of 13 analysts and represents a decline in eps of −525.2% over the same quarter last year, when the company reported earnings of $0.18/share.
The revenue forecast of $180.4 million based on a poll of 13 analysts implies a year-over-year (YoY) decline in revenue of −35.3%. Last year the company reported $278.7 million in revenue for the quarter.
|Metric||Expected||Prior Year||YoY Change|
Earnings Call Trends
Historically, management has exceeded analyst expectations 6 out of the last 8 tracked quarters, and missed 2 quarters.
What are your expectations from BJ’s Restaurants, Inc. for earnings this quarter? Let us know in the comments!
In the following table, we summarize the company’s stock price movements after earnings releases. The “Price Day Prior” column shows the closing stock price on the day before the earnings report, and the “Price Next Day” column shows the stock price at the end of the trading day after the earnings report. After the last earnings report for the period ending June 30, 2020, the stock price reacted by increasing 11.4%.
|Report Date||Price Day Prior||Price Next Day||Change %||Result|
|July 23, 2020||$18.79||$20.94||11.4%||Increase|
|May 7, 2020||$18.85||$21.40||13.5%||Increase|
|February 20, 2020||$43.10||$38.82||−9.9%||Decline|
|October 24, 2019||$37.29||$43.35||16.3%||Increase|
The other question to consider is one of earnings manipulation. There is a lot of pressure on management each quarter to deliver on earnings expectations. The Beneish M-Score is a statistical model that provides some insight into whether the company might be manipulating earnings. With a Beneish M-Score of −2.66, the model suggests that the company is not likely to be an earnings manipulator. A value of −2.66 implies a 0.4% chance of earnings manipulation.
Fundamentals And Technical Analysis
BJ’s Restaurants, Inc. is currently trading at $32.62/share, up 0.4% for the day. The company is trading at approximately 73.4% of its 52-week high of $44.47/share. The company’s stock price is up 55.8% since the last earnings report and up 2.2% over the previous week.
The company’s 14 Day Relative Price Index (RSI) of 51.87 suggests the company is trading in technically neutral territory. The RSI is considered overbought when above 70 and oversold when below 30.
The current share price implies a price-to-earnings (P/E) multiple of −48.34 and a forward P/E multiple of −16.22.
BJ’s Restaurants, Inc.’s current share price also implies a price-to-book (P/B) multiple of 2.32. The following table summarizes some other key fundamental ratios:
|Last Reported Fiscal Period Key||FY2020.Q2|
|Period End Date||June 30, 2020|
|Stock Price (Current)||$32.62|
|P/E Ratio (Fwd)||−16.2x|
|Total Debt / Total Capital||47.2%|
|Levered Free Cash Flow||-$2.072 million|
|EV / EBITDA||25.7x|
BJ’s Restaurants, Inc. is a small-cap stock with a market capitalization of $726.8 million and a total enterprise value of $1.289 billion. The company operates in the Consumer Discretionary sector and the Hotels, Restaurants & Leisure industry.
BJ’s Restaurants, Inc. owns and operates casual dining restaurants in the United States. Its restaurants offer pizzas, craft and other beers, appetizers, entrées, pastas, sandwiches, specialty salads, and desserts. As of April 6, 2020, the company operated 209 restaurants. BJ’s Restaurants, Inc. was founded in 1978 and is based in Huntington Beach, California.