Papa John's stock dives even more after earnings

Discussion in 'Market News' started by sniper-academy, Feb 28, 2018.

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  1. sniper-academy

    sniper-academy Administrator Staff Member

    Sep 30, 2011
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    Papa John's International Inc. shares dropped more than 7% in late trading Tuesday after the pizza chain capped off a tumultuous end of the year with an earnings miss. Papa John's reported fourth-quarter earnings of $28.5 million, or 81 cents a share, on sales of $467.6 million, up from $439.6 million a year ago. After adjusting for effects of the new tax law and impairment, the company reported earnings of 65 cents a share, down from 69 cents a share a year ago. Analysts on average had expected adjusted earnings of 70 cents a share on sales of $464 million. As the fourth quarter wound down, Papa John's founder John Schnatter stepped down as chief executive after blaming the NFL in part for poor results, and the company soon lost its CFO as well. "We know our potential is so much greater than our results, and we are taking significant steps to reinvigorate our record of profitable growth and value creation," new CEO Steve Ritchie said in Tuesday's announcement, adding that he expects to see "marked improvement in sales later in 2018." The company predicted standard earnings of $2.40 to $2.60 a share in 2018, while analysts on average were projecting GAAP earnings of $2.87 a share, according to FactSet. Shares fell more than 7% in after-hours trading following the results, which sent prices toward new 52-week lows. The stock has already declined 28.3% in the past year, as the S&P 500 index has gained 17.3%.

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