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Chuy's Earnings: What To Look For From CHUY

StockStory - Wed Feb 21, 1:01AM CST

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Casual restaurant chain Chuy’s (NASDAQ:CHUY) will be reporting earnings tomorrow after market hours. Here's what to expect.

Last quarter Chuy's reported revenues of $113.5 million, up 6.4% year on year, beating analyst revenue expectations by 1.6%. It was a very strong quarter for the company, with an impressive beat of analysts' gross margin estimates and a solid beat of analysts' revenue estimates.

Is Chuy's buy or sell heading into the earnings? Read our full analysis here, it's free.

This quarter analysts are expecting Chuy's's revenue to grow 12% year on year to $116.6 million, improving on the 5.5% year-over-year increase in revenue the company had recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.38 per share.

Chuy's Total Revenue

Majority of analysts covering the company have reconfirmed their estimates over the last thirty days, suggesting they are expecting the business to stay the course heading into the earnings. The company missed Wall St's revenue estimates twice over the last two years.

Looking at Chuy's's peers in the sit-down dining segment, some of them have already reported Q4 earnings results, giving us a hint of what we can expect. Texas Roadhouse delivered top-line growth of 15.3% year on year, beating analyst estimates by 0.3% and Brinker International reported revenues up 5.4% year on year, missing analyst estimates by 0.4%. Both companies (Texas Roadhouse and Brinker International) traded flat on the results. 

Read our full analysis of Texas Roadhouse's results here and Brinker International's results here.

There has been positive sentiment among investors in the sit-down dining segment, with the stocks up on average 2% over the last month. Chuy's is up 3.5% during the same time, and is heading into the earnings with analyst price target of $40.1, compared to share price of $34.8.

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