Earnings Preview: Yum Brands Reports Q4 Results Monday

Feb. 2.12 | About: Yum! Brands, (YUM)

Yum! Brands, Inc. (NYSE:YUM) is due to report earnings after the closing bell on February 06, 2012. Yum! will also have a conference call the next day in the morning. Below we can see the results of Yum! Brands over the last few earnings periods.

YUM! Brands, Inc., together with its subsidiaries, operates as a quick service restaurant company in the United States and internationally. The company was founded in 1997 and is headquartered in Louisville, Kentucky.

52 Week High: $64.20
52 Week Low: $47.15
Book Value: $4.32
Float Short: 1.24%

On average, 17 analysts are expecting a drop of $-0.09 in earnings per share compared to last quarter's results of $0.83. The number to beat is $0.74 per share, based on the estimated mean earnings. Analyst estimates range between $0.73 and $0.76 per share.

The current trailing twelve months P/E ratio is 23.2. The forward P/E ratio is 19.74.
From a month ago, the stock has increased in price 7.91%, with a change from a year ago of 37.24%.
The stock has done well compared to the overall market. When comparing to the S&P 500, the year to date difference is 3.35%.

While many don't think of Yum as a China play, I like Yum for the exposure to China. I don't think highly of Chinese stocks trading in US exchanges, but I do think highly of some American companies doing business in China, and this is one of them. The moving averages are all pointing higher, including the 200, 90 and 60 day moving averages. The PE mulitple is a bit high for my taste, so I would look for a dip in price before taking a bite if you have not already done so.

Management has provided an improvement of year-over-year revenue. Revenue reported was $11.34 billion for 2010 vs. $10.84 billion for 2009. The bottom line has rising earnings year-over-year of $1.16 billion for 2010 vs. $1.07 billion for 2009.The company's earnings before interest and taxes are rising with an EBIT year-over-year of $1.77 billion for 2010 vs. $1.59 billion for 2009. Rising revenue along with rising earnings is a very good sign and what we want to see with our companies. Be sure to check the margins in the earnings release to make sure that the bottom line is keeping up with the top line.

Here is a look at the fiscal year revenue.
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Here are the last few quarters to get an idea how well they perform compared to estimates
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Reported earnings per share compared to the mean estimate. Differences are rounded.

The total short interest number of shares for YUM
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The number of days to cover short interest based on average daily trading volume for YUM
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Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.

Disclaimer: I use a proprietary blend of technical analysis, financial crowd behavior, and fundamentals in my short-term trades, and while not totally the same in longer swing trades to investments, the concepts used are similar. You may want to use this article as a starting point of your own research with your financial planner. I use Seeking Alpha, Edgar Online, and Yahoo Finance for most of my data. I use the "confirmed" symbols from earnings.com that I believe to be of the most interest.