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Domino's (DPZ) to Report Q4 Earnings: What's in the Offing?

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Domino's Pizza, Inc. (DPZ - Free Report) is scheduled to report fourth-quarter fiscal 2022 results on Feb 23, before the opening bell. In the last reported quarter, the company’s earnings missed the Zacks Consensus Estimate by 5.4%.

Q4 Estimates

The Zacks Consensus Estimate for fiscal fourth-quarter earnings is pegged at $3.92 per share, suggesting a decline of 7.8% from the prior-year quarter. Over the past seven days, earnings estimates have been revised downward by 0.3%. The Zacks Consensus Estimate for revenues is pegged at $1.44 billion, suggesting an improvement of 6.9% from the prior-year reported figure.

Factors to Note

Domino's fiscal fourth-quarter top line is likely to have benefited from solid international expansion, sales building efforts and robust digitalization. An increase in sales of U.S. company-owned stores, as well as supply-chain revenues, is likely to have aided the top line.

We expect U.S. company-owned stores, U.S. franchise advertising and supply-chain revenues to increase 3%, 1.3% and 6.8% to $145.5 million, $145.1 million and $855.1 million, respectively.

The company has been witnessing growth in terms of its carryout and delivery businesses. It has been focusing on Car Side Delivery 2-Minute Guarantee with awareness campaigns. Increased revenues from franchise advertising and supply chain are anticipated to have driven the fiscal fourth-quarter performance.

However, elevated wage pressures and commodities inflation are likely to have negatively impacted the company’s bottom line. We expect total cost of sales to increase 8.2% year over year to $905.6 million. The gross margin in the quarter is likely to be 36.1% compared with 37.7% reported in the prior-year quarter.

What the Zacks Model Unveils

Our proven model doesn’t conclusively predict 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.

Earnings ESP: Domino's has an Earnings ESP of -1.76%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: Domino's currently carries a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.

Domino's Pizza Inc Price and EPS Surprise

 

Domino's Pizza Inc Price and EPS Surprise

Domino's Pizza Inc price-eps-surprise | Domino's Pizza Inc Quote

Stocks Poised to Beat 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 on earnings this season.

Casey's General Stores (CASY - Free Report) currently has an Earnings ESP of +14.04% and a Zacks Rank #3. The company is likely to register a bottom-line decline while reporting third-quarter fiscal 2023 numbers. The Zacks Consensus Estimate for the quarterly earnings per share of $1.67 suggests a decline of 2.3% from the year-ago quarter's reported figure.

Casey's top line is expected to increase year over year. The Zacks Consensus Estimate for quarterly revenues is pegged at $3.52 billion, indicating an increase of 15.5% from the prior-year quarter’s reported figure. CASY has a trailing four-quarter earnings surprise of 7.2%, on average.

Dollar General (DG - Free Report) currently has an Earnings ESP of +0.93% and a Zacks Rank of 3. The company is likely to register a bottom-line improvement while reporting fourth-quarter fiscal 2022 results. The Zacks Consensus Estimate for quarterly earnings per share of $3.24 suggests an increase of 26.1% from the year-ago quarter's reported.

DG’s top line is expected to rise year over year. The Zacks Consensus Estimate for quarterly revenues is pegged at $10.32 billion, suggesting a 19.3% increase from the prior-year quarter’s reported figure.

Ross Stores (ROST - Free Report) currently has an Earnings ESP of +3.16% and a Zacks Rank #3. The company is likely to register a bottom-line improvement while reporting fourth-quarter fiscal 2022 results. The Zacks Consensus Estimate for quarterly earnings per share of $1.23 suggests an increase of 18.3% from the year-ago quarter's reported number.

Ross Stores’ top line is expected to rise year over year. The Zacks Consensus Estimate for quarterly revenues is pegged at $5.13 billion, suggesting a 2.2% gain from the prior-year quarter’s reported figure. ROST delivered an earnings beat of 10.5%, on average, in the trailing four quarters.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.

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