Services

Is Domino's Poised to Take Off With Q4 Results Thursday?

Domino’s Pizza Inc. (NYSE: DPZ) is scheduled to release its fourth-quarter financial results before the markets open on Thursday. The consensus estimates are $2.98 in earnings per share (EPS) and $1.12 billion in revenue. In the same period of last year, it said it had $2.62 in EPS and $1.08 billion in revenue.

In its third quarter, Domino’s saw its Global retail sales increase 5.8%, or 7.5% without the negative impact of changes in foreign currency exchange rates. This increase was primarily due to an increase in worldwide store counts during the trailing four quarters, as well as U.S. and international same-store sales growth, resulting in higher supply chain and global franchise revenues.

U.S. same-store sales grew 2.4% from the prior-year quarter, and international same-store sales grew 1.7%.

At the same time, Domino’s said that the new two-year to three-year outlook calls for global retail sales growth in the range of 7% to 10%, U.S. same-store sales growth of 2% to 5% and international same-store sales growth 1% to 4%.

Overall, Domino’s stock has underperformed the broad markets with a gain of about 5% in the past 52 weeks. In the past quarter alone, the stock is up closer to 6%.

A few analysts weighed in on Domino’s ahead of the report:

  • Goldman Sachs has a Buy rating with a $320 price target.
  • Wells Fargo has an Equal Weight rating and a $294 price target.
  • Maxim Group’s Buy rating comes with a $315 price target.
  • Guggenheim has a Buy rating with a $327 price target.
  • Cowen rates it as a Buy with a $325 price target.

Domino’s stock traded at $297.44 on Wednesday, in a 52-week range of $220.90 to $302.05. The consensus price target is $300.23.


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