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Domino's (DPZ) Gears Up For Q4 Earnings: What's in Store?

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Domino's Pizza, Inc. (DPZ - Free Report) is scheduled to report fourth-quarter 2020 results on Feb 25, before the opening bell. In the last reported quarter, the company’s earnings missed the Zacks Consensus Estimate by 9.5%.

Q4 Expectations

The Zacks Consensus Estimate for fourth-quarter earnings is pegged at $3.79, indicating an improvement from $3.13 reported in the year-ago quarter. Over the past seven days, earnings estimates have remained stable. The consensus mark for revenues stands at $1.38 billion, suggesting growth of 20.2% from the prior-year reported number.

Factors to Note

The company’s fourth-quarter performance is likely to have benefited from robust U.S. and international comparable sales. Solid digital ordering system and higher global retail sales might have aided the company’s performance in the quarter to be reported.

U.S. comps may have gained from growth in both ticket and orders. Meanwhile, Domino’s digital loyalty program, Piece of the Pie Rewards, has been contributing significantly to higher traffic. The extended ways to order a pizza have kept Domino’s at the forefront of digital ordering and customer convenience. These efforts are likely to have driven the company’s performance in the to-be-reported quarter. Moreover, its car-side delivery, which enables convenient and contact-free carryout experience for its customers, bodes well.

Moreover, robust domestic revenues from franchise advertising and supply chain, and domestic company-owned stores’ revenues is likely to get reflected in the fourth-quarter top line.

Dominos Pizza Inc Price and EPS Surprise Dominos Pizza Inc Price and EPS Surprise

Dominos Pizza Inc price-eps-surprise | Dominos Pizza Inc Quote

What the Zacks Model Unveils

Our proven model doesn’t predicts an earnings beat for Domino's this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that's not the case here.

Earnings ESP: Domino's has an Earnings ESP of +5.28%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: Domino's carries a Zacks Rank #4 (Sell).

Stocks Poised to Beat Earnings Estimates

Here are some stocks worth considering from the Zacks Retail-Wholesale space as our model shows that these have the right combination of elements to beat earnings this season:

Dollar Tree, Inc. (DLTR - Free Report) has an Earnings ESP of +1.94% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.

Burlington Stores, Inc. (BURL - Free Report) has an Earnings ESP of +6.20% and a Zacks Rank #3.

Dollar General Corporation (DG - Free Report) has an Earnings ESP of +1.11% and a Zacks Rank #3.

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