What To Expect From Bloomin' Brands’s (BLMN) Q3 Earnings

Restaurant company Bloomin’ Brands (NASDAQ:BLMN) will be reporting results tomorrow morning. Here’s what investors should know.

Bloomin' Brands met analysts’ revenue expectations last quarter, reporting revenues of $1.12 billion, down 2.9% year on year. It was a disappointing quarter for the company, with underwhelming earnings guidance for the full year and a miss of analysts’ EBITDA estimates.

Is Bloomin' Brands a buy or sell going into earnings? Read our full analysis here, it’s free.

This quarter, analysts are expecting Bloomin' Brands’s revenue to decline 3.3% year on year to $1.04 billion, a reversal from the 2.3% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.20 per share.

Heading into earnings, analysts covering the company have grown increasingly bearish with revenue estimates seeing 3 downward revisions over the last 30 days (we track 10 analysts). Bloomin' Brands has missed Wall Street’s revenue estimates five times over the last two years.

Looking at Bloomin' Brands’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 11.1% on average over the last month. Bloomin' Brands is up 11.4% during the same time and is heading into earnings with an average analyst price target of $19.83 (compared to the current share price of $17.30).

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