Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
What: Shares of restaurant operator Chuy's Holdings (NASDAQ:CHUY) climbed 10% today after its preliminary quarterly results and full-year outlook topped Wall Street estimates.
So what: Chuy's preliminary fourth-quarter results -- management expects sales to jump 40% to about $46.7 million -- and 2013 outlook are so strong that analysts have no choice but to raise their valuation estimates. Management cited healthy same-store sales, as well as successful new restaurant openings, for the upbeat guidance, giving investors plenty of confidence in its growth prospects going forward.
Now what: Management now sees full-year 2013 EPS of $0.66 to $0.69, above the average analyst estimate of $0.65. "With a strong pipeline of new units planned for 2013, we are confident that we are in great shape to build upon our 2012 results as we enter the new year," CEO Steve Hislop said in a statement. Of course, with the stock up about 65% from its late-July IPO and trading at a forward P/E of 40, much of that bullishness might already be built into the price.
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