Earnings Preview: Brinker International

| About: Brinker International, (EAT)

Brinker International (NYSE:EAT) is expected to report Q3 earnings before the market open on Tuesday, April 21 with a conference call scheduled for 10:00 am ET.


Analysts are looking for a profit of 45c on revenue of $864.58M. The consensus range is 44c-45c for EPS, and revenue of $844.4M-$884.59M, according to First Call. Brinker recently pre-announced Q3 EPS 44c-45c, in line with the consensus, and well above previous expectations for 28c per share. Including one-time items, Brinker expects Q3 EPS to be 33c-44c. The company credited cost cutting measures for improving profitability and said the one-time items consist of lease termination charges and severance costs. Additionally, the company forecast that Q3 same-store sales fell 5.6%. As for its performance over the past four quarters, Brinker has beat expectations twice and met forecasts twice.

Analyst Views

Morgan Stanley analyst John Glass believes that early data points suggest that casual dining stocks managed costs to beat EPS expectations despite the poor sales environment. In particular, he believes Brinker may have beat expectations due to efforts to cut labor costs and overhead.

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