48 days have passed by since the last earnings report for Darden Restaurants, Inc. (NYSE:DRI) and the new quarterly results look set to arrive in 41 days. The shares of DRI at the moment are trading at a volume of 1.12 million, which compares with its normal daily standard volume of 1.29 million shares. This has led to the shares of the company advancing by 1.64%, currently exchanging hands at $112.77 a share. DRI stock has been up by $15.64 (-12.18%) ever since it reached its 52-week high of $128.41 back in September 13, 2019. It has progressed below its 50-day moving average of $114.86 and is down -0.86% over the past week. The stock has retreated -12.7% since the last one arrived so the question here is that will the downbeat trend in that time frame continue leading up to its next earnings release, or is the DRI share price due for a breakout?
Darden Restaurants, Inc. (DRI) Forecasts And Latest Quarter Earnings
Ahead of their fiscal second-quarter to be released on Tuesday, Dec 17, 2019, 27 analysts who are covering the company are estimating that it will record a profit of $1.07 per share, with analysts having different outlooks from $1 to $1.12. The current agreed outlook, when compared to the profit recorded last year, is at $0.92 a share, thus an increase of 16.3% is expected. The profit view for a complete financial year for Darden Restaurants, Inc. is expected to be around $6.4 in current year, a decline of nearly 9.97% from last year which was $5.82.
Let’s now look at their sales section, DRI’s revenue is estimated to be $1973, a figure which is more than the $1973 recorded for Q2 last year. Their sequential sales though are expected to fall by -3.29% from their Q1’s sales which were $2.13B. Their full-year outlook is pegged at $9.04B, implying that there would be an increase of 6.23% over the $8.51B they recorded last year in revenue. Darden Restaurants, Inc. is projected to get sales lifted by 2.77% in the next quarter, with a revenue target of $9.29B.
Analyzing The Earnings History Of Darden Restaurants, Inc. (NYSE:DRI)
In the past few years, the DRI stock has been known to miss the Wall Street’s earnings projection. The company missed 0% of the time, according to the data pulled on their earnings, was able to meet predictions on 1 occasions and topped expectations 11 times. Looking at the past trend, the price of Darden Restaurants, Inc. shares had sank following the release of their earnings in 21 of the last 37 quarters.
Looking back, here is how Darden Restaurants, Inc. (DRI) stock reacted to earnings misses and beats. It gave investors reason to be bullish with the price going down after 1 of the last four earnings reports. The shares of Darden Restaurants, Inc. recorded -5.07%, 1.07%, 6.87% and 5.02%, respectively, on the first day of past earnings releases. After a week of earnings reports, the changes were -6.79%, 2.21%, 9.54% and -2.2%. Their post-earnings price movements have resulted in an average increase of 1.97% and an average increase of 0.69% in Darden Restaurants, Inc. on next day and 7th day, sequentially. DRI’s one month stock performance led to its shares declining by -2.61% with a return of 7.09% witnessed over the last 52 weeks.
The higher number of analysts has assigned a buy or better ratings (15) on the Darden Restaurants, Inc. stock, while 13 of them have a rating of a Hold with the 11-year target price suggested by the analysts standing at $126.65. This price target implies potential upside of 12.31 percent over the next 12 months based on the current share price.
Darden Restaurants, Inc. (DRI) Post Earnings Announcement Drift (PEAD)
Back on September 19, 2019, Darden Restaurants, Inc. (NYSE:DRI) released its Q1 results, in which it recorded EPS of $1.38 that exceeded consensus estimates of $1.36. After the earnings were reported, the price of DRI stock kicked off the session at $120.44 and remained in a range of $122.02 to $123.91 on the first day. The shares were priced at $120.68 at the close with a total volume of shares being 4353623.
On June 20, 2019, the Q4 earnings report was disclosed with EPS of $1.76. This was above the estimation of $1.73 per share. The stock price range of DRI was between $114.85 and $119.84 on the first-day post announcement, after opening the day at $112.5. The session came to close at $118.67 and there was a total volume of 4004052 shares.
March 21, 2019 was the day when its Q3 results were unveiled. The earnings came in at $1.8, beating the projected $1.74 per share. The very next day, DRI stock opened at $112.5 while staying in a range of $113.49 to $116.56. At the end, it moved to $116.11 a total volume of shares been 3790611.
In the year-ago Q2 earnings on December 18, 2018, the company saw profit per share of $0.92. That was better than the $0.91 analysts had expected. Darden Restaurants, Inc. share price started at $101.33 on the first full trading day post-earning and then exchanged hands between $102.94 and $105.09 throughout the session. The closing price of $103.85 came on the back of 4334541 shares in volume.