Potbelly (NASDAQ:PBPB) Corp. is set to announce its quarterly earnings tomorrow after the market closes. This comes amidst a period of impressive share price performance for the company, with a 16.4% rise over the past month. This growth has outperformed the overall restaurant sector, which has been in decline during the same period. As of today, Potbelly's shares are trading at $8.79, with analysts setting a price target of $13.
The company's previous quarter reported revenues of $126.6 million, marking a 9.2% year-on-year (YoY) increase. However, this fell short of analyst expectations by 0.38%, coupled with an underperformance in earnings per share (EPS).
For the upcoming quarter, growth is expected to slow down, with projected revenues of $121.6 million, equivalent to a 3.35% YoY increase. This is a significant decrease compared to last year's growth rate of 15.7%. Despite missing Wall Street's revenue estimates three times in the past two years and only one recent upward revision, analysts' sentiment towards Potbelly appears to be growing more positive.
This bullish trend among analysts comes amidst significant shifts in the economy and a massive technological shift towards cloud-native cybersecurity. Notably, Potbelly's performance stands out when compared to its peers in the restaurant sector. Both Chipotle (NYSE:CMG) and BJ's reported YoY top-line growth of 11.3% and 2.34% respectively, each falling short of their own analyst estimates.
As the market prepares for Potbelly's earnings announcement tomorrow, investors will be keen to see if the company can meet or exceed analyst expectations this time around, and whether its share price can continue its upward trajectory.
InvestingPro Insights
In light of the upcoming earnings announcement for Potbelly Corp., it's vital to consider some key InvestingPro Tips and real-time data. Based on InvestingPro, Potbelly has been experiencing consistently increasing earnings per share and has been trading at a low P/E ratio relative to near-term earnings growth. However, the company's revenue growth has been slowing down recently, and its net income is expected to drop this year.
In terms of InvestingPro data, Potbelly's Market Cap stands at $257.41M, and its P/E Ratio is at 20.05 as of Q2 2023. The company's revenue for the last twelve months as of Q2 2023 was $482.69M, indicating a growth of 15.29%. The Price / Book ratio for the same period stood at a high of 33.12.
These insights can provide a more comprehensive view of Potbelly's financial landscape. It's worth noting that InvestingPro offers several more tips and data points for a detailed understanding of the company's performance.
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