NEW YORK (TheStreet) -- Bloomin' Brands
(BLMN - Get Report) price target was lowered to $20 from $27 but remains a "buy" at Deutsche Bank
(DB - Get Report), following the casual dining company's guidance reduction.
Deutsche Bank called yesterday's sell-off an overreaction as the company's shares plunged to a 52-week low.
Bloomin' Brands cut earnings per share for 2014 to a range of $1.05-$1.10 from $1.21, citing lower dinner traffic and and an increasingly competitive environment.
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- The revenue growth came in higher than the industry average of 5.9%. Since the same quarter one year prior, revenues slightly increased by 6.0%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in 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.
- The company, on the basis of change in net income from the same quarter one year ago, has underperformed when compared to that of the S&P 500 and the Hotels, Restaurants & Leisure industry average. The net income has decreased by 15.0% when compared to the same quarter one year ago, dropping from $63.22 million to $53.73 million.
- The debt-to-equity ratio is very high at 2.68 and currently higher than the industry average, implying increased risk associated with the management of debt levels within the company.
- You can view the full analysis from the report here: BLMN Ratings Report
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