The Wendy’s Company Third Quarter Earnings Sneak Peek

The Wendy’s Company (NASDAQ:WEN) will unveil its latest earnings on Thursday, November 8, 2012. Wendy’s Arby’s Group is a quick service restaurant company, which is comprised of the Wendy’s and Arby’s brands.

The Wendy’s Company Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average analyst estimate is for net income of 5 cents per share, a rise of 25% from the company’s actual earnings for the year-ago quarter. 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 0% compared to last year’s 15 cents.

Past Earnings Performance: The company fell in line with estimates last quarter after missing in the prior quarter. After falling short of the mean estimate by 2 cents in the first quarter, the company fell in line with expectations by reporting profit of 5 cents last quarter.

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A Look Back: In the second quarter, the company swung to a loss of $5.5 million (one cent a share) from a profit of $11.3 million (3 cents) a year earlier, meeting analyst expectations. Revenue rose 3.8% to $645.9 million from $622.5 million.

Wall St. Revenue Expectations: On average, analysts predict $639.6 million in revenue this quarter, a rise of 4.6% from the year-ago quarter. Analysts are forecasting total revenue of $2.51 billion for the year, a rise of 3.3% from last year’s revenue of $2.43 billion.

Analyst Ratings: There are mostly holds on the stock with 14 of 18 analysts surveyed giving that rating.

Key Stats:

On the top line, the company is looking to build on last quarter’s revenue increase, which snapped a string of revenue drops. Revenue fell 29% in the third quarter of the last fiscal year, 26.8% in the fourth quarter of the last fiscal year and 30% in the first quarter before climbing in the second quarter.

Balance Sheet Analysis: The company’s current ratio of assets to liabilities came in at 2.09 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 2.21 in the first quarter to the last quarter driven in part by an increase in liabilities. Current liabilities increased 7.7% to $348.5 million while assets rose 2.2% to $730 million.

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

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