Upscale restaurant company The One Group Hospitality (NASDAQ:STKS) will be announcing earnings results tomorrow after market close. Here’s what to expect.
The ONE Group missed analysts’ revenue expectations by 3.3% last quarter, reporting revenues of $172.5 million, up 107% year on year. Despite the strong top line growth, it was a mixed quarter for the company, with an impressive beat of analysts’ EBITDA estimates but full-year revenue guidance slightly missing analysts’ expectations.
Is The ONE Group a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting The ONE Group’s revenue to grow 180% year on year to $215.6 million, improving from the 5.3% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.01 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.
Looking at The ONE Group’s peers in the sit-down dining segment, some have already reported their Q3 results, giving us a hint as to what we can expect. Brinker International delivered year-on-year revenue growth of 12.5%, beating analysts’ expectations by 3.4%, and The Cheesecake Factory reported revenues up 4.2%, in line with consensus estimates. Brinker International traded up 5.6% following the results while The Cheesecake Factory was also up 8.8%.
Read our full analysis of Brinker International’s results here and The Cheesecake Factory’s results here.
There has been positive sentiment among investors in the sit-down dining segment, with share prices up 6.8% on average over the last month. The ONE Group is down 4.4% during the same time and is heading into earnings with an average analyst price target of $7.83 (compared to the current share price of $3.44).
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