Denny’s Corp Second Quarter Earnings Sneak Peek

Denny’s Corporation (NASDAQ:DENN) will unveil its latest earnings on Tuesday, July 31, 2012. Denny’s operates a family-style restaurant chains in America. The company, through its wholly-owned subsidiaries, Denny’s Holdings and Denny’s, owns and operates the Denny’s restaurant brand.

Denny’s Corporation Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average analyst estimate is for profit of 6 cents per share, a decline of 25% from the company’s actual earnings for the year-ago quarter. During the past three months, the average estimate has moved down from 7 cents. Between one and three months ago, the average estimate was unchanged. It has since dropped over the last month. Analysts are projecting profit to rise by 15.2% compared to last year’s 28 cents.

Past Earnings Performance: Last quarter, the company beat estimates by one cent, coming in at net income of 6 cents per share against an estimate of profit of. The company also topped expectations in the fourth quarter of the last fiscal year.

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A Look Back: In the first quarter, profit rose 42.2% to $5.9 million (6 cents a share) from $4.1 million (4 cents a share) the year earlier, exceeding analyst expectations. Revenue fell 6.7% to $126.7 million from $135.8 million.

Wall St. Revenue Expectations: Analysts are projecting a decline of 8.2% in revenue from the year-earlier quarter to $124.7 million.

Stock Price Performance: Between July 19, 2012 and July 25, 2012, the stock price dropped 28 cents (-6.1%), from $4.56 to $4.28. The stock price saw one of its best stretches over the last year between December 12, 2011 and December 21, 2011, when shares rose for eight straight days, increasing 21.3% (+70 cents) over that span. It saw one of its worst periods between May 1, 2012 and May 9, 2012 when shares fell for seven straight days, dropping 7.7% (-33 cents) over that span.

Key Stats:

On the top line, the company is hoping to use this earnings announcement to snap a string of three-straight quarters of revenue declines. Revenue fell 2.3% in the third quarter of the last fiscal year and 4.2% in fourth quarter of the last fiscal year before falling again in the first quarter.

There has enjoyed solid performance recently heading into this earnings announcement with profit rising by a year-over-year average of 834.9% for the last four quarters.

Balance Sheet Analysis: The company’s current ratio of assets to liabilities came in at 0.78 last quarter. The current ratio is an indication of a firm’s liquidity and ability to meet creditor demands and generally, a ratio less than one could indicate a company may have difficulty meeting current obligations.

Analyst Ratings: With five analysts rating the stock a buy, none rating it a sell and none rating the stock a hold, there are indications of a bullish stance by analysts.

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(Company fundamentals by Xignite Financials. Earnings estimates provided by Zacks)

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