Dine Brands (DIN) Beats Q2 Earnings Estimates

Core Insights - Dine Brands (DIN) reported quarterly earnings of $1.71 per share, exceeding the Zacks Consensus Estimate of $1.65 per share, but down from $1.82 per share a year ago, indicating an earnings surprise of 3.64% [1] - The company posted revenues of $206.27 million for the quarter ended June 2024, missing the Zacks Consensus Estimate by 2.20% and down from $208.42 million year-over-year [2] - Dine Brands shares have declined approximately 35.7% year-to-date, contrasting with the S&P 500's gain of 9.9% [3] Earnings Outlook - The company's earnings outlook is crucial for investors, as it includes current consensus earnings expectations for upcoming quarters and any recent changes to these expectations [4] - The current consensus EPS estimate for the next quarter is $1.56 on revenues of $206.97 million, and for the current fiscal year, it is $6.16 on revenues of $835.27 million [7] Industry Context - The Retail - Restaurants industry, to which Dine Brands belongs, is currently ranked in the bottom 27% of over 250 Zacks industries, suggesting potential challenges ahead [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can impact Dine Brands' stock performance [5] Estimate Revisions - Ahead of the earnings release, the estimate revisions trend for Dine Brands was unfavorable, resulting in a Zacks Rank 4 (Sell) for the stock, indicating expected underperformance in the near future [6]