Olive Garden Parent Darden Beats; Navistar Crushes Profit Views

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Darden Restaurants ( DRI ) and Carnival ( CCL ) beat quarterly estimates, while Navistar ( NAV ) crushed profit forecasts Tuesday, sending their shares higher.

Darden Restaurants

[ibd-display-video id=3033048 width=50 float=left autostart=true] Estimates : Fiscal Q2 EPS to climb 9.4% to 70 cents, with revenue rising 12.7% to $1.85 billion, according to Zacks Investment Research. Same-store sales are seen up 1.3%, according to Consensus Metrix, with Olive Garden up 1.5% and Longhorn Steakhouse up 2.2%.

Results : Adjusted earnings climbed 14% to 73 cents. Revenue rose 14.6% to $1.88 billion. Same-restaurant sales rose 3.1% overall and gained 3% at Olive Garden and 3.8% and Longhorn Steakhouse.

Outlook : Full-year EPS is now seen at $4.45-$4.53, up from a prior view of $4.38-$4.50 and better than the consensus of $4.44. Revenue is now seen growing 13%, at the high end of its earlier guidance, and same-restaurant sales rising 2%, also at the high end of views.

Stocks : Shares jumped 6.8% to close at 96.69 on the stock market today . On Monday, shares rose 2.4% to break out of a cup-with-handle base with an 88.67 entry.

The restaurant sector is poised for a shakeup as companies have been struggling in recent quarters amid rising food and labor costs.

Roark Capital Group agreed last month to buy Buffalo Wild Wings ( BWLD ) for about $2.4 billion. And Jana Partners disclosed last month an 8.7% stake in Outback Steakhouse parent Bloomin' Brands ( BLMN ), saying it planned to have discussions with the company's board and management, "including a review of strategic alternatives including exploring a sale."


Estimates : Fiscal Q4 EPS of 63 cents, swinging from a year-ago loss of 28 cents a share, as revenue rises 12.5% to $2.32 billion.

Results : EPS of $1.43, adjusted for restructuring costs. Revenue swelled 26% to $2.6 billion.

Outlook: Navistar sees 2018 revenue of $9 billion-$9.5 billion. Analysts expected $9.109 billion.

"We'll drive even greater customer consideration with our commitment to uptime and our ongoing cadence of new product launches, which will include the introduction of our new medium-duty vehicle, as well as new IC Bus offerings," said Chairman and CEO Troy Clarke in a statement. "At the same time, we will build on our alliance with Volkswagen Truck & Bus by investing in and collaborating on the major technologies that are reshaping our industry, including electric, connectivity and autonomous."

Stock : Shares of the maker of commercial vehicles jumped 7.4% to 45.30, finishing just shy of a 45.57 buy point.

Shares across the trucking sector sold off last month after Tesla (TSLA) unveiled its electric truck on Nov. 16.

Nomura-Instinet said the Semi, which will be designed with hopes of getting as many as 500 miles on a single batter charge, called it a "a classic case of disruption." Cowen analyst Jeffrey Osborne, however, said the unveiling left some questions unanswered, like the costs of the truck and the network of chargers needed to keep the trucks running.


Estimates : Fiscal Q4 EPS to fall 25% to 50 cents, with revenue up 5.5% at $4.15 billion.

Results : EPS of 63 cents on revenue of $4.26 billion

Outlook : Full-year 2018 EPS of $4.00-$4.30.

Stock : Shares rose 2.3% 68.13, nearing a 69.99 buy point.

In September, Carnival topped Q3 forecasts and signaled that hurricanes and major earthquakes in Mexico have had and will have a limited impact on its operations.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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