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Domino's (DPZ) Stock Adds 0.8% Ahead of Earnings: What To Watch
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Shares of Domino’s Pizza (DPZ - Free Report) added 0.8% during regular hours Wednesday, the last day of trading before the restaurant chain releases its latest quarterly earnings report. Investors displayed a bit of excitement ahead of the report, and this—in addition to the company’s status in the industry—means we should keep a close eye on DPZ throughout the day Thursday.
Domino’s shares have outpaced the “Retail – Restaurants” industry over the past year. The pizza giant has tallied better-than-expected earnings results seven out of the trailing eight quarters, and it has recorded one of the most impressive same-store sales growth streaks in the entire retail sector.
The company will now look to post its 98th straight quarter of global same-store sales growth and 29th straight quarter of domestic same-store sales growth.
Domino's Pizza Inc Price, Consensus and EPS Surprise
Meanwhile, according to our latest Zacks Consensus Estimates, analysts expect Domino’s to report adjusted earnings of $1.74 per share and revenue of $787.46 million. These results would represent year-over-year growth rates of 32% and 25%, respectively.
Investors should note that DPZ’s consensus earnings projection has trended upward over the duration of the quarter. However, mixed agreement among the most-recent revisions has dragged the stock down to a Zacks Rank #3 (Hold).
Looking at share price performance, DPZ has added more than 33% within the past year, including 22% in the trailing 12 weeks. The stock is now continuously testing new all-time highs.
A strong earnings beat might be what Domino’s needs in order to continue that positive momentum. To gauge how likely the company is to outperform estimates tomorrow morning, we can turn to our exclusive Earnings ESP figure.
Zacks Earnings ESP (Expected Surprise Prediction) compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter. The Most Accurate Estimate is a version of the Zacks Consensus whose definition is related to change.
This is done because, generally speaking, when an analyst posts an estimate right before an earnings release, it means that they have fresh information which could potentially be more accurate than what analysts thought about a company two or three months ago.
A positive Earnings ESP paired with a Zacks Rank #3 (Hold) or better ranking helps us feel confident about the potential for an earnings beat. In fact, our 10-year backtest has revealed that this methodology has accurately produced a positive surprise 70% of the time.
DPZ currently has an Earnings ESP of -0.45%. Although its Zacks Rank is within our range, this negative ESP means that our model is not conclusively calling for a beat. Nevertheless, the company’s recent earnings surprise streak provides some renewed confidence.
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Domino's (DPZ) Stock Adds 0.8% Ahead of Earnings: What To Watch
Shares of Domino’s Pizza (DPZ - Free Report) added 0.8% during regular hours Wednesday, the last day of trading before the restaurant chain releases its latest quarterly earnings report. Investors displayed a bit of excitement ahead of the report, and this—in addition to the company’s status in the industry—means we should keep a close eye on DPZ throughout the day Thursday.
Domino’s shares have outpaced the “Retail – Restaurants” industry over the past year. The pizza giant has tallied better-than-expected earnings results seven out of the trailing eight quarters, and it has recorded one of the most impressive same-store sales growth streaks in the entire retail sector.
The company will now look to post its 98th straight quarter of global same-store sales growth and 29th straight quarter of domestic same-store sales growth.
Domino's Pizza Inc Price, Consensus and EPS Surprise
Domino's Pizza Inc Price, Consensus and EPS Surprise | Domino's Pizza Inc Quote
Meanwhile, according to our latest Zacks Consensus Estimates, analysts expect Domino’s to report adjusted earnings of $1.74 per share and revenue of $787.46 million. These results would represent year-over-year growth rates of 32% and 25%, respectively.
Investors should note that DPZ’s consensus earnings projection has trended upward over the duration of the quarter. However, mixed agreement among the most-recent revisions has dragged the stock down to a Zacks Rank #3 (Hold).
Looking at share price performance, DPZ has added more than 33% within the past year, including 22% in the trailing 12 weeks. The stock is now continuously testing new all-time highs.
A strong earnings beat might be what Domino’s needs in order to continue that positive momentum. To gauge how likely the company is to outperform estimates tomorrow morning, we can turn to our exclusive Earnings ESP figure.
Zacks Earnings ESP (Expected Surprise Prediction) compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter. The Most Accurate Estimate is a version of the Zacks Consensus whose definition is related to change.
This is done because, generally speaking, when an analyst posts an estimate right before an earnings release, it means that they have fresh information which could potentially be more accurate than what analysts thought about a company two or three months ago.
A positive Earnings ESP paired with a Zacks Rank #3 (Hold) or better ranking helps us feel confident about the potential for an earnings beat. In fact, our 10-year backtest has revealed that this methodology has accurately produced a positive surprise 70% of the time.
DPZ currently has an Earnings ESP of -0.45%. Although its Zacks Rank is within our range, this negative ESP means that our model is not conclusively calling for a beat. Nevertheless, the company’s recent earnings surprise streak provides some renewed confidence.
Looking for Stocks with Skyrocketing Upside?
Zacks has just released a Special Report on the booming investment opportunities of legal marijuana.
Ignited by new referendums and legislation, this industry is expected to blast from an already robust $6.7 billion to $20.2 billion in 2021. Early investors stand to make a killing, but you have to be ready to act and know just where to look.
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