Stock Story -
Casual sandwich chain Potbelly (NASDAQ:PBPB) will be reporting results tomorrow after the bell. Here's what you need to know.
Potbelly beat analysts' revenue expectations by 1.5% last quarter, reporting revenues of $111.2 million, down 6% year on year. It was a stunning quarter for the company, with an impressive beat of analysts' earnings estimates.
Is Potbelly a buy or sell going into earnings? Find out by reading the original article on StockStory, it's free.
This quarter, analysts are expecting Potbelly's revenue to decline 5.5% year on year to $119.6 million, a reversal from the 9.2% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.06 per share.
The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Potbelly has missed Wall Street's revenue estimates four times over the last two years.
Looking at Potbelly's peers in the modern fast food segment, some have already reported their Q2 results, giving us a hint as to what we can expect. Wingstop (NASDAQ:WING) delivered year-on-year revenue growth of 45.3%, beating analysts' expectations by 7.3%, and Chipotle reported revenues up 18.2%, topping estimates by 1.1%. Wingstop traded down 1.7% following the results while Chipotle was also down 1.9%.
Read the full analysis of Wingstop's and Chipotle's results on StockStory.
Investors in the modern fast food segment have had steady hands going into earnings, with share prices up 1.6% on average over the last month. Potbelly is down 8.3% during the same time and is heading into earnings with an average analyst price target of $17 (compared to the current share price of $6.62).