Krispy Kreme Doughnuts Second Quarter Earnings Sneak Peek

Krispy Kreme Doughnuts (NYSE:KKD) will unveil its latest earnings on Wednesday, August 22, 2012. Krispy Kreme Doughnuts and its subsidiaries are engaged in the sale of doughnuts and related items through company-owned stores.

Krispy Kreme Doughnuts Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average estimate of analysts is for net income of 5 cents per share, a decline of 16.7% from the company’s actual earnings for the same quarter a year ago. The average estimate is the same as three months ago. Between one and three months ago, the average estimate was unchanged. It also has not changed during the last month. Analysts are projecting profit to rise by 19.4% compared to last year’s 25 cents.

Past Earnings Performance: The company met estimates last quarter after beating the forecasts in the prior two. In the first quarter, the company reported profit of 8 cents per share versus a mean estimate of net income of 8 cents per share. In the fourth quarter of the last fiscal year, the company beat estimates by one cent.

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Wall St. Revenue Expectations: On average, analysts predict $104 million in revenue this quarter, a rise of 6.2% from the year-ago quarter. Analysts are forecasting total revenue of $437.2 million for the year, a rise of 8.4% from last year’s revenue of $403.2 million.

Stock Price Performance: Between June 20, 2012 and August 16, 2012, the stock price had risen 27 cents (4.3%), from $6.28 to $6.55. The stock price saw one of its best stretches over the last year between August 8, 2012 and August 16, 2012, when shares rose for seven straight days, increasing 4.1% (+26 cents) over that span. It saw one of its worst periods between July 17, 2012 and July 25, 2012 when shares fell for seven straight days, dropping 9.2% (-62 cents) over that span.

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

Balance Sheet Analysis: The company’s current ratio of assets to liabilities came in at 2.78 last quarter. Having a ratio above 2:1 is usually considered a good indicator of a company’s liquidity and ability to meet creditor demands.

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

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