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McDonald's Second Quarter Earnings Preview
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MCD
McDonald's (NYSE:MCD) is scheduled to announce its second quarter earnings on Monday, July 23, 2012.
Investors should care about a company's quarterly earnings because it shows the state of the business over the past 90 days and provides guidance for the following 90 days. SEE: 5 Tricks Companies Use During Earnings Season
What to Expect: Analysts are expecting McDonald's to report earnings of $1.38 per share, up 2.2% from a year ago, when the company reported earnings of $1.35 per share.
The consensus estimate, while unchanged in the past month, is down from $1.43 three months ago. For the fiscal year, analysts are expecting earnings of $5.55 per share.
McDonald's is expected to report revenue of $6.95 billion for the quarter, beating last year's figure of $6.91 billion by 0.6%. For the fiscal year, expected revenue is $27.83 billion.
Company Performance: These last four quarters have marked revenue growth. It increased 7.1% to $6.55 billion in the first quarter. Prior to that, the figure rose 9.8% in the fourth quarter of the last fiscal year, 13.7% in the third quarter of the last fiscal year and 16.1% in the second quarter of the last fiscal year.
Perhaps one of the most widely-used stock analysis tools is the price-to-earnings ratio, or P/E. A high or low P/E ratio is not good or bad in and of itself, but a company trading with a high P/E ratio must continue to post strong financial performance or its stock price is likely to fall. SEE: The P/E Ratio: A Good Market-Timing Indicator
Since April 20, 2012, the stock price has fallen 4.2% to $91.89 from $95.94. McDonald's' best recent streak was when its price gained $3.91 per share between June 11, 2012 and June 15, 2012.
Investors should care about a company's quarterly earnings because it shows the state of the business over the past 90 days and provides guidance for the following 90 days. SEE: 5 Tricks Companies Use During Earnings Season
What to Expect: Analysts are expecting McDonald's to report earnings of $1.38 per share, up 2.2% from a year ago, when the company reported earnings of $1.35 per share.
The consensus estimate, while unchanged in the past month, is down from $1.43 three months ago. For the fiscal year, analysts are expecting earnings of $5.55 per share.
McDonald's is expected to report revenue of $6.95 billion for the quarter, beating last year's figure of $6.91 billion by 0.6%. For the fiscal year, expected revenue is $27.83 billion.
Company Performance: These last four quarters have marked revenue growth. It increased 7.1% to $6.55 billion in the first quarter. Prior to that, the figure rose 9.8% in the fourth quarter of the last fiscal year, 13.7% in the third quarter of the last fiscal year and 16.1% in the second quarter of the last fiscal year.
Perhaps one of the most widely-used stock analysis tools is the price-to-earnings ratio, or P/E. A high or low P/E ratio is not good or bad in and of itself, but a company trading with a high P/E ratio must continue to post strong financial performance or its stock price is likely to fall. SEE: The P/E Ratio: A Good Market-Timing Indicator
Since April 20, 2012, the stock price has fallen 4.2% to $91.89 from $95.94. McDonald's' best recent streak was when its price gained $3.91 per share between June 11, 2012 and June 15, 2012.
by
Investopedia Staff
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