Preview: Red Robin Gourmet Burgers's Earnings

Red Robin Gourmet Burgers RRGB announces its next round of earnings this Tuesday, May 25. Here is Benzinga's everything-that-matters guide for this Tuesday's Q1 earnings announcement.

What Are Earnings, Net Income, And Earnings Per Share?

Earnings and EPS are useful metrics of profitability. Total earnings also known as net income is equal to total revenue minus total expenses. Dividing net income by the total number of shares outstanding yields EPS.

Earnings And Revenue

Analysts covering Red Robin Gourmet Burgers have modeled for quarterly EPS loss of $1.16 on revenue of $310.44 million. In the same quarter last year, Red Robin Gourmet Burgers reported a loss per share of $6.66 on revenue of $306.06 million.

What Are Analyst Estimates And Earnings Surprises, And Why Do They Matter?

Wall Street analysts who study this company will publish analyst estimates of revenue and EPS. The averages of all analyst EPS and revenue estimates are called the "consensus estimates"; these consensus estimates can have a significant effect on a company's performance during an earnings release. When a company posts earnings or revenue above or below a consensus estimate, it has posted an "earnings surprise", which can really move a stock depending on the difference between actual and estimated values.

If the company were to report earnings in line when it publishes results Tuesday, quarterly profit would be up 82.58%. Revenue would be up 1.43% on a year-over-year basis. Here is how the company's reported EPS has stacked up against analyst estimates in the past:

Stock Performance

Shares of Red Robin Gourmet Burgers were trading at $34.91 as of May 21. Over the last 52-week period, shares are up 141.89%. Given that these returns are generally positive, long-term shareholders are probably satisfied going into this earnings release.

Do not be surprised to see the stock move on comments made during its conference call. Red Robin Gourmet Burgers is scheduled to hold the call at 17:00:00 ET and can be accessed here.