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Factors Setting the Tone for Domino's (DPZ) Q3 Earnings
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Domino's Pizza, Inc. (DPZ - Free Report) is scheduled to report third-quarter 2020 results on Oct 8, before the opening bell. In the last reported quarter, the company’s earnings surpassed the Zacks Consensus Estimate by 32.9%. Further, it has a trailing four-quarter earnings surprise of 18.6%, on average.
Q3 Expectations
The Zacks Consensus Estimate for third-quarter earnings is pegged at $2.73, indicating an increase from $2.05 reported in the year-ago quarter. Over the past seven days, earnings estimates have remained stable. For quarterly revenues, the consensus mark stands at $944.5 million, hinting at an improvement of 15.1% from the prior-year quarter’s reported number.
Factors at Play
The company’s results for the September quarter are likely to reflect robust domestic revenues. Domino’s solid digital ordering system and other sales initiatives are likely to have aided the company’s performance in the quarter to be reported. However, international sales in the period might reflect the impact of the ongoing crisis.
Meanwhile, the Zacks Consensus Estimate for domestic revenues from franchise advertising and supply chain is pegged at $105 million and $555 million each, implying an improvement of 18% and 14.4%, respectively, from the year-ago reported figure. Moreover, domestic company-owned stores’ revenues are anticipated to witness a 17.9% rise to $112 million. However, the Zacks Consensus Estimate for international franchise royalties and fees is pegged at $54 million, suggesting a decline of 2% from the prior-year quarter’s reported number.
U.S. comps are likely to have benefited 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 thus 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.
Our proven model 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.
You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Here are some other stocks worth considering from the Zacks Retail-Wholesale space as our model shows that these too have the right combination of elements to beat on earnings this season:
Brinker International, Inc. (EAT - Free Report) currently has a Zacks Rank of 1 and an Earnings ESP of +65.43%.
The Cheesecake Factory Incorporated (CAKE - Free Report) has a Zacks Rank #3 and an Earnings ESP of +28.45%.
Starbucks Corporation (SBUX - Free Report) has a Zacks Rank of 2 and an Earnings ESP of +7.81%.
5 Stocks Set to Double
Each was hand-picked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2020. Each comes from a different sector and has unique qualities and catalysts that could fuel exceptional growth.
Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.
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Factors Setting the Tone for Domino's (DPZ) Q3 Earnings
Domino's Pizza, Inc. (DPZ - Free Report) is scheduled to report third-quarter 2020 results on Oct 8, before the opening bell. In the last reported quarter, the company’s earnings surpassed the Zacks Consensus Estimate by 32.9%. Further, it has a trailing four-quarter earnings surprise of 18.6%, on average.
Q3 Expectations
The Zacks Consensus Estimate for third-quarter earnings is pegged at $2.73, indicating an increase from $2.05 reported in the year-ago quarter. Over the past seven days, earnings estimates have remained stable. For quarterly revenues, the consensus mark stands at $944.5 million, hinting at an improvement of 15.1% from the prior-year quarter’s reported number.
Factors at Play
The company’s results for the September quarter are likely to reflect robust domestic revenues. Domino’s solid digital ordering system and other sales initiatives are likely to have aided the company’s performance in the quarter to be reported. However, international sales in the period might reflect the impact of the ongoing crisis.
Meanwhile, the Zacks Consensus Estimate for domestic revenues from franchise advertising and supply chain is pegged at $105 million and $555 million each, implying an improvement of 18% and 14.4%, respectively, from the year-ago reported figure. Moreover, domestic company-owned stores’ revenues are anticipated to witness a 17.9% rise to $112 million. However, the Zacks Consensus Estimate for international franchise royalties and fees is pegged at $54 million, suggesting a decline of 2% from the prior-year quarter’s reported number.
U.S. comps are likely to have benefited 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 thus 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.
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 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.
You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Domino's has a Zacks Rank #2 and an Earnings ESP of +2.17%, currently. You can see the complete list of today’s Zacks #1 Rank stocks here.
Other Stocks Poised to Beat Earnings Estimates
Here are some other stocks worth considering from the Zacks Retail-Wholesale space as our model shows that these too have the right combination of elements to beat on earnings this season:
Brinker International, Inc. (EAT - Free Report) currently has a Zacks Rank of 1 and an Earnings ESP of +65.43%.
The Cheesecake Factory Incorporated (CAKE - Free Report) has a Zacks Rank #3 and an Earnings ESP of +28.45%.
Starbucks Corporation (SBUX - Free Report) has a Zacks Rank of 2 and an Earnings ESP of +7.81%.
5 Stocks Set to Double
Each was hand-picked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2020. Each comes from a different sector and has unique qualities and catalysts that could fuel exceptional growth.
Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.
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