Is it time to Buy before this week’s earning report Arcos Dorados (NYSE:ARCO)

Earnings results for Arcos Dorados (NYSE:ARCO)

Arcos Dorados Holdings Inc. is expected* to report earnings on 05/12/2021 before market open. The report will be for the fiscal Quarter ending Mar 2021. According to Zacks Investment Research, based on 1 analysts’ forecasts, the consensus EPS forecast for the quarter is $-0.03. The reported EPS for the same quarter last year was $-0.26.

Arcos Dorados last posted its quarterly earnings data on March 17th, 2021. The restaurant operator reported $0.11 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.01 by $0.10. The firm had revenue of $607.39 million for the quarter, compared to the consensus estimate of $589.79 million. Arcos Dorados has generated $0.38 earnings per share over the last year. Arcos Dorados has confirmed that its next quarterly earnings report will be published on Wednesday, May 12th, 2021. Arcos Dorados will be holding an earnings conference call on Wednesday, May 12th. Interested parties can register for or listen to the call using this link.

Analyst Opinion on Arcos Dorados (NYSE:ARCO)

4 Wall Street analysts have issued ratings and price targets for Arcos Dorados in the last 12 months. Their average twelve-month price target is $5.78, predicting that the stock has a possible downside of 9.06%. The high price target for ARCO is $6.00 and the low price target for ARCO is $5.50. There are currently 2 hold ratings and 2 buy ratings for the stock, resulting in a consensus rating of “Buy.”

Arcos Dorados has received a consensus rating of Buy. The company’s average rating score is 2.50, and is based on 2 buy ratings, 2 hold ratings, and no sell ratings. According to analysts’ consensus price target of $5.78, Arcos Dorados has a forecasted downside of 9.1% from its current price of $6.35. Arcos Dorados has only been the subject of 1 research reports in the past 90 days.

Dividend Strength: Arcos Dorados (NYSE:ARCO)

Arcos Dorados has a dividend yield of 0.95%, which is in the bottom 25% of all stocks that pay dividends. Arcos Dorados does not have a long track record of dividend growth. The dividend payout ratio of Arcos Dorados is 15.79%. This payout ratio is at a healthy, sustainable level, below 75%. Based on earnings estimates, Arcos Dorados will have a dividend payout ratio of 35.29% next year. This indicates that Arcos Dorados will be able to sustain or increase its dividend.

Insiders buying/selling: Arcos Dorados (NYSE:ARCO)

In the past three months, Arcos Dorados insiders have not sold or bought any company stock. 38.77% of the stock of Arcos Dorados is held by institutions. High institutional ownership can be a signal of strong market trust in this company.

Earnings and Valuation of Arcos Dorados (NYSE:ARCO

Earnings for Arcos Dorados are expected to grow in the coming year, from ($0.64) to $0.17 per share. The P/E ratio of Arcos Dorados is -9.36, which means that its earnings are negative and its P/E ratio cannot be compared to companies with positive earnings. The P/E ratio of Arcos Dorados is -9.36, which means that its earnings are negative and its P/E ratio cannot be compared to companies with positive earnings. Arcos Dorados has a P/B Ratio of 3.11. P/B Ratios above 3 indicate that a company could be overvalued with respect to its assets and liabilities.

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