Krispy Kreme Doughnuts Third Quarter Earnings Sneak Peek

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Krispy Kreme Doughnuts (NYSE:KKD) will unveil its latest earnings on Monday, November 19, 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 8 cents per share, a rise of 14.3% from the company’s actual earnings for the same quarter a year ago. During the past three months, the average estimate has moved up from 5 cents. Between one and three months ago, the average estimate moved up. It has been unchanged at 8 cents during the last month. Analysts are projecting profit to rise by 35.5% versus last year to 42 cents.

Past Earnings Performance: Last quarter, the company topped estimates by 0 cents, coming in at profit of 7 cents per share against a mean estimate of net income of 5 cents. The company fell in line with estimates in the first quarter.

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A Look Back: In the second quarter, profit fell 44.2% to $4.9 million (7 cents a share) from $8.8 million (12 cents a share) the year earlier, but exceeded analyst expectations. Revenue rose 4.3% to $102.1 million from $98 million.

Stock Price Performance: Between October 17, 2012 and November 14, 2012, the stock price dropped $1.14 (-14.2%), from $8.03 to $6.89. The stock price saw one of its best stretches over the last year between August 8, 2012 and August 17, 2012, when shares rose for eight straight days, increasing 8.1% (+51 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.

Wall St. Revenue Expectations: On average, analysts predict $104.6 million in revenue this quarter, a rise of 5.9% from the year-ago quarter. Analysts are forecasting total revenue of $431.3 million for the year, a rise of 7% from last year’s revenue of $403.2 million.

Analyst Ratings: With five 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 2.63 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. The company regressed in this liquidity measure from 2.78 in the first quarter to the last quarter driven in part by an increase in liabilities. Current liabilities increased 6.9% to $39.9 million while assets rose 1% to $104.9 million.

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

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