Wingstop Shares Surge 11.5% on Q4 Forecast of $0.84 EPS, $177M Revenue
Wingstop shares jumped 11.5% Tuesday, ranking among Russell 1000 top gainers after forecasts for Q4 EPS of $0.84 on $177.36 million revenue, a 4.6% earnings decline despite 9% sales growth. The stock trades at a 42.3 P/E and $7.22 billion market cap after a sell downgrade by Wall Street Zen.
1. Tuesday Trading Spike
Wingstop shares surged 11.5% on Tuesday, ranking among the Russell 1000’s top gainers after the stock capitalized on its upcoming quarterly forecast.
2. Q4 Earnings Forecast
Analysts project fourth-quarter EPS of $0.84 on $177.36 million revenue, marking a 4.6% decline in earnings despite a 9% increase in sales versus year-ago levels.
3. Valuation Metrics and Downgrade
The stock trades at a 42.3 price-to-earnings ratio with a $7.22 billion market capitalization and carries an enterprise-value-to-operating-cash-flow ratio of 69.01; the company’s debt-to-equity ratio stands at -1.81 and its current ratio at 4.05. Wall Street Zen downgraded the rating to sell, citing valuation and cash-flow concerns.
4. Earnings Call Outlook
Wingstop will host its quarterly earnings call at 10:00 AM ET on February 18, when management is expected to address cost pressures, margin outlook and strategies to leverage sales growth.