NEW YORK (TheStreet) -- Bloomin' Brands (BLMN - Get Report) reported a 6% first quarter increase in revenue over the previous year to $1.16 billion during the its first quarter earnings period today.
The Outback Steakhouse and Carrabbas Italian Grill restaurant concept owner's revenue tally was in line analysts quarterly guidance.
However, earnings for the period were 46 cents per diluted share, 1 cent less than analysts expectations. The company also maintained its full year guidance at earnings of $1.21 per share, below analysts estimates of $1.22 per share.
Shares are flat in pre-market trading on Friday.
TheStreet Ratings team rates BLOOMIN' BRANDS INC as a Hold with a ratings score of C. TheStreet Ratings Team has this to say about their recommendation:
"We rate BLOOMIN' BRANDS INC (BLMN) a HOLD. The primary factors that have impacted our rating are mixed - some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its revenue growth, notable return on equity and reasonable valuation levels. However, as a counter to these strengths, we also find weaknesses including generally higher debt management risk, poor profit margins and weak operating cash flow."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- BLMN's revenue growth has slightly outpaced the industry average of 4.0%. Since the same quarter one year prior, revenues slightly increased by 5.2%. Growth in the company's revenue appears to have helped boost the earnings per share.
- The company's current return on equity greatly increased when compared to its ROE from the same quarter one year prior. This is a signal of significant strength within the corporation. Compared to other companies in the Hotels, Restaurants & Leisure industry and the overall market, BLOOMIN' BRANDS INC's return on equity significantly exceeds that of both the industry average and the S&P 500.
- Compared to where it was 12 months ago, the stock is up, but it has so far lagged the appreciation in the S&P 500. Looking ahead, our view is that this company's fundamentals will not have much impact in either direction, allowing the stock to generally move up or down based on the push and pull of the broad market.
- The gross profit margin for BLOOMIN' BRANDS INC is rather low; currently it is at 15.55%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of 5.61% trails that of the industry average.
- The debt-to-equity ratio is very high at 2.97 and currently higher than the industry average, implying increased risk associated with the management of debt levels within the company. Along with this, the company manages to maintain a quick ratio of 0.36, which clearly demonstrates the inability to cover short-term cash needs.
- You can view the full analysis from the report here: BLMN Ratings Report