What to Expect from Arcos Dorados Holdings

Arcos Dorados Holdings (NYSE: ARCO  ) is expected to report Q1 earnings on April 30. Here's what Wall Street wants to see:

The 10-second takeaway
Comparing the upcoming quarter to the prior-year quarter, average analyst estimates predict Arcos Dorados Holdings's revenues will grow 4.4% and EPS will decrease -58.3%.

The average estimate for revenue is $962.0 million. On the bottom line, the average EPS estimate is $0.05.

Revenue details
Last quarter, Arcos Dorados Holdings tallied revenue of $1.01 billion. GAAP reported sales were 5.3% higher than the prior-year quarter's $958.5 million.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
Last quarter, non-GAAP EPS came in at $0.23. GAAP EPS of $0.21 for Q4 were 4.5% lower than the prior-year quarter's $0.22 per share.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Recent performance
For the preceding quarter, gross margin was 15.5%, 280 basis points worse than the prior-year quarter. Operating margin was 9.0%, 30 basis points worse than the prior-year quarter. Net margin was 4.4%, 40 basis points worse than the prior-year quarter.

Looking ahead

The full year's average estimate for revenue is $4.14 billion. The average EPS estimate is $0.58.

Investor sentiment
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 620 members out of 635 rating the stock outperform, and 15 members rating it underperform. Among 150 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 147 give Arcos Dorados Holdings a green thumbs-up, and three give it a red thumbs-down.

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Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Arcos Dorados Holdings is hold, with an average price target of $15.75.

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