The One Group Down 4.77% To $6.50 After Earnings Miss

One Group Hospitality Inc (STKS) reported less than expected earnings this afternoon for Q2 2023.

Analyst expectations for The One Group earnings per share (EPS) were at $0.15, with the company missing those estimates with a reported EPS of $0.06, leading to a negative surprise of $0.09 per share (-60%). The One Group's earnings were down 60% year-over-year as the firm reported an EPS of $0.15 in its year-ago quarter. The negative annual growth shows the Consumer Cyclical company isn't performing well amid current economic conditions.

Revenues were downbeat at $83.4 million. That is an increase of 2.80% in revenues from the year-ago report and is 8.99% lower than consensus estimates set at $91.6 million.

The stock is down 4.77% to $6.50 after the report.

The firm's higher revenue growth to earnings signals that the firm has not been able to reduce costs and has seen its profit margin decrease.

Wall Street Analysts had an average rating of Buy on the stock prior to the report.

Trading in the five days leading up to the report earned The One Group a Bearish Sentiment Rank from InvestorsObserver.

Prior to the report, InvestorsObserver gave the stock an overall score of 51. Meanwhile, the average Wall Street analyst rated the stock a Buy.

The One Group Hospitality Inc develops and operates restaurants and lounges and provides food and beverage services for hospitality venues, including hotels, casinos, and other high-end locations internationally. The company operates through four segments: STK, Kona Grill, ONE Hospitality, and Corporate. The company generates the vast majority of its revenue from the domestic market.