NEW YORK (TheStreet) -- Buffalo Wild Wings (BWLD) reports first quarter results after the bell Monday. But many investors on StockTwits.com say they're not risking a long bet on the sports bar chain before earnings.
$BWLD is it worth playing ER? If so call or put? Whats the feel?-- Cap (@Captn) Apr. 27 at 10:57 PM
@Captn i dont know. u like playing routllette?-- Pete (@BahamasBound) Apr. 27 at 10:58 PM
There are three reasons to be wary of the stock ahead of its report, say investors. The geopolitical climate has soured risk appetites, making investors more likely to focus on any bad news to emerge in the earnings announcement. The long, snowy winter in the U.S. fell in the middle of Buffalo Wild Wings' aggressive expansion plans, potentially pressuring top line growth, while expenses cut more deeply into profits. And the chart doesn't indicate an upward trajectory.
Buffalo Wild Wings shares have declined 12.7% from an all-time high of $159 on March 21. Some technicians see a bearish head and shoulders pattern in the chart that suggests further declines in the near future.
$BWLD H&S pattern on watch!-- Institutional Volume Analyst (@Stockoptionexpert) Apr. 26 at 10:47 PM
Investors also doubt that the company can beat analyst expectations of $1.34 in earnings per share on $362.96 million in revenue. The buy-side expects that Buffalo Wild Wings will fall a penny short on EPS, according to Estimize.com, which bases its consensus estimate on 22 submitted predictions. Estimize contributors do, however, expect Buffalo Wild Wings to beat Wall Street sales estimates by nearly $1.4 million.
Buffalo Wild Wings has a history of surprising Wall Street for the better. It beat EPS expectations three out of the past four quarters. It missed on the first quarter of 2013, according to stats on Yahoo! Finance.
Last quarter, the company saw little impact from the snowy weather. Total revenue rose 12.4% to $341.5 million, despite the cold temperatures that other restaurant chains blamed for keeping customers indoors.
In her comments during Buffalo Wild Wings' fourth quarter earnings call, CEO Sally Smith promised big things this quarter, thanks to promotions centered around college basketball's March Madness. Smith also reaffirmed guidance of 20% earnings growth for 2014.
$BWLD March Madness and wings?-- Eric Powell (@epow) Apr. 23 at 01:53 PM
However, most investors say the stock could go either way. Sentiment is divided straight down the middle, according to StockTwits' analytics. And many investors say any after-hours pop is bound to be short lived.
$BWLD Like cmg expecting a pop'n ride down, every ER has faded so far-- jb (@joelyboyblue) Apr. 27 at 02:08 AM
At the time of publication the author held no positions in any of the stocks mentioned.
This article represents the opinion of a contributor and not necessarily that of TheStreet or its editorial staff.