“Times of uncertainty are the best to build.” Those famous words in the making come from Bloomin’ Brands (NASDAQ:BLMN) CEO David Deno, as Bloomin’ presented its fourth-quarter earnings. The results were enough to send Bloomin’ shares higher in Thursday afternoon trading, although the actual earnings report turned out to be mixed.
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Bloomin’ Brands brought in earnings of $0.68 per share. That beat analyst estimates calling for $0.65 per share. However, Bloomin’ missed on revenue, bringing in just $1.1 billion against projections calling for $1.12 billion. Despite this, sales were actually up 4.8% year-over-year. Now, Bloomin’ expects the first quarter’s earnings to come in at $0.85 per share to $0.90 per share, well in line with analyst estimates of $0.87 per share. For the full year 2023, meanwhile, Bloomin’ looks for EPS figures between $2.91 and $3.00 per share, well above consensus figures calling for $2.70.
On top of all that, Bloomin’ brought out a bang-up dessert to top off the earnings meal. It authorized a share buyback plan of $125 million. With several brands to support its operations, from Outback Steakhouse to Bonefish Grill and Carrabba’s—each of which saw increases in comparable-store sales—Bloomin’ should have sufficient cash flow to support a buyback. Plus, Bloomin’ even has plans to build out. That may strike some as foolhardy given the macroeconomics, but there’s real potential to get ahead found therein.
Overall, analyst consensus on Bloomin’ stock comes in at a Moderate Buy. However, its shares also come with a 5.15% downside risk thanks to its average price target of $26.33.