Sweetgreen Set for Earnings Amid Mixed Stock Performance

In a recent report, Sweetgreen, Inc. is preparing for its upcoming earnings announcement, with forecasts indicating an EPS of -$0.16. The company's stock has seen a month-long appreciation, outpacing market averages, which may influence investor sentiment and stock price movements.

Date: 01-10-2024

AI Rating: 6

Sweetgreen, Inc. (SG) is preparing to disclose its earnings, providing insight into its financial health. The forecasted EPS stands at -$0.16, showcasing a 27.27% improvement compared to the same quarter last year. This upward movement is a positive indicator, hinting at potential improvements in profitability.

The anticipated revenue for the upcoming earnings report is $174.92 million, marking a 14.01% increase year-over-year, suggesting robust sales growth. In the context of full-year expectations, the Zacks Consensus Estimates point to an annual EPS of -$0.75 and a revenue forecast of $678.12 million, indicating growth rates of +22.68% and +16.11% respectively compared to the previous year.

It is important to note that the Zacks Rank for Sweetgreen, Inc. is currently #3 (Hold), which reflects a neutral outlook. The stagnant EPS estimate revisions over the last month offer a signal that while there is an expectation of growth, the confidence level among analysts is not overwhelmingly high.

The Retail - Restaurants industry, where Sweetgreen operates, holds a Zacks Industry Rank of 178, placing it in the bottom 30% of over 250 industries. This positioning may imply broader challenges within the industry, possibly affecting investor sentiment.

Given the relationship between estimate changes and stock performance, the lack of recent positive revisions is worth noting. Investors typically look for upward estimate revisions as a sign of strengthening business dynamics. The company's outperformance over the past month, appreciating 13.73%, versus its sector's gain of 6.34% and the S&P 500's increase of 2.06%, indicates a relatively strong performance. However, comparing this with the recent closing price of $35.45 and its decline of -1.39% in the latest market session may create mixed signals.

Stocks: SG