Earnings Preview: P.F. Chang's China Bistro

P.F. Chang's China Bistro (PFCB) is expected to report Q2 earnings Wednesday, July 23 before market open, with a conference call scheduled for 1:00 pm ET.

Guidance

Analysts are looking for a profit of 32c on revenue of $307.26M. The consensus range is 29c to 36c for EPS, and revenue of $304.1M to $314.6M, according to First Call. In April, the company raised its FY08 EPS to $1.34 to $1.40 from $1.32 to $1.38 vs. First Call consensus of $1.36.

Analyst Views

Wedbush Morgan believes P.F. Chang's Q2 may offer "an upside sales surprise." The firm said that at the company's Bistro chain, sales were better than expected in the first quarter and may continue to rise. The analyst also said the company's Q2 sales may have benefited from three higher-priced menu items, a marketing push in California and the economic stimulus checks.

Piper Jaffray, which upgraded shares on July 16 to Buy from Neutral, said that while initiatives implemented at both the Bistro and Pei Wei concept may have varying degrees of success, positive catalysts outweigh sector headwinds. Piper said that "at the very least," earnings estimates are achievable.