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Domino's (DPZ) Q1 Earnings Likely to Grow Despite Coronavirus
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Domino's Pizza, Inc. (DPZ - Free Report) is scheduled to report first-quarter 2020 earnings on Apr 23, before the opening bell. In the last reported quarter, the company’s earnings surpassed the Zacks Consensus Estimate by 6.8%. Further, it beat estimates in the trailing four quarters with a positive earnings surprise of 5.8%, on average.
Q1 Expectations
The Zacks Consensus Estimate for first-quarter earnings is pegged at $2.29, higher than $2.20 reported in the year-ago quarter. Over the past seven days, earnings estimate have been revised downward by a penny. For quarterly revenues, the consensus mark stands at nearly $866.8 million, indicating an improvement of 3.7% from the prior-year quarter.
Factors at Play
Despite the coronavirus pandemic, the company’s first-quarter performance is expected to have benefited from robust international and domestic revenues. Domino’s solid digital ordering system, robust international expansion and other sales initiatives are likely to have positively impacted the company’s performance in the quarter to be reported.
The company recently came out with its preliminary results, wherein it anticipates preliminary Global retail sales (including total sales of franchise and company-owned units) to grow 4.4% year over year in first quarter. Preliminary comps at international stores and domestic stores are expected to rise 3.9% and 4.9%, year over year, respectively. Excluding foreign currency impact, global retail sales are expected to increase 5.9%.
The company anticipates fiscal first-quarter system-wide sales of U.S. company-owned stores, U.S. franchise stores, U.S. stores and International stores (excluding foreign currency impact) to rise 3.9%, 1.5%, 1.6% and 1.5%, year over year, respectively.
Moreover, the Zacks Consensus Estimate for international revenues is pegged at $59 million, suggesting growth of 7.3% from the prior-year quarter. Moreover, domestic revenues from franchise and supply chain are pegged at $105 million and $511 million, indicating an improvement of 8.2% and 22.2%, respectively, from the year-ago reported figure. However, domestic company-owned stores’ revenues are anticipated to witness a sharp decline of 14.6% to $105 million.
Our proven model does not 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. But that's not the case here.
You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Here are some stocks from the Zacks Retail-Wholesale space that investors may consider as our model shows that these have the right combination of elements to post an earnings beat this quarter:
Sprouts Farmers Market, Inc. (SFM - Free Report) currently has a Zacks Rank #1 and an Earnings ESP of +21.28%.
Wayfair Inc. (W - Free Report) has a Zacks rank #2 and an Earnings ESP of +2.62%.
Yum China Holdings Inc. (YUMC - Free Report) has a Zacks Rank #3 and an Earnings ESP of +18.37%.
Breakout Biotech Stocks with Triple-Digit Profit Potential
The biotech sector is projected to surge beyond $775 billion by 2024 as scientists develop treatments for thousands of diseases. They’re also finding ways to edit the human genome to literally erase our vulnerability to these diseases.
Zacks has just released Century of Biology: 7 Biotech Stocks to Buy Right Now to help investors profit from 7 stocks poised for outperformance. Our recent biotech recommendations have produced gains of +50%, +83% and +164% in as little as 2 months. The stocks in this report could perform even better.
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Domino's (DPZ) Q1 Earnings Likely to Grow Despite Coronavirus
Domino's Pizza, Inc. (DPZ - Free Report) is scheduled to report first-quarter 2020 earnings on Apr 23, before the opening bell. In the last reported quarter, the company’s earnings surpassed the Zacks Consensus Estimate by 6.8%. Further, it beat estimates in the trailing four quarters with a positive earnings surprise of 5.8%, on average.
Q1 Expectations
The Zacks Consensus Estimate for first-quarter earnings is pegged at $2.29, higher than $2.20 reported in the year-ago quarter. Over the past seven days, earnings estimate have been revised downward by a penny. For quarterly revenues, the consensus mark stands at nearly $866.8 million, indicating an improvement of 3.7% from the prior-year quarter.
Factors at Play
Despite the coronavirus pandemic, the company’s first-quarter performance is expected to have benefited from robust international and domestic revenues. Domino’s solid digital ordering system, robust international expansion and other sales initiatives are likely to have positively impacted the company’s performance in the quarter to be reported.
The company recently came out with its preliminary results, wherein it anticipates preliminary Global retail sales (including total sales of franchise and company-owned units) to grow 4.4% year over year in first quarter. Preliminary comps at international stores and domestic stores are expected to rise 3.9% and 4.9%, year over year, respectively. Excluding foreign currency impact, global retail sales are expected to increase 5.9%.
The company anticipates fiscal first-quarter system-wide sales of U.S. company-owned stores, U.S. franchise stores, U.S. stores and International stores (excluding foreign currency impact) to rise 3.9%, 1.5%, 1.6% and 1.5%, year over year, respectively.
Moreover, the Zacks Consensus Estimate for international revenues is pegged at $59 million, suggesting growth of 7.3% from the prior-year quarter. Moreover, domestic revenues from franchise and supply chain are pegged at $105 million and $511 million, indicating an improvement of 8.2% and 22.2%, respectively, from the year-ago reported figure. However, domestic company-owned stores’ revenues are anticipated to witness a sharp decline of 14.6% to $105 million.
Domino's Pizza Inc Price and EPS Surprise
Domino's Pizza Inc price-eps-surprise | Domino's Pizza Inc Quote
What the Zacks Model Unveils
Our proven model does not 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. But that's not the case here.
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 #3 and an Earnings ESP of -0.14%. You can see the complete list of today’s Zacks #1 Rank stocks here.
Stocks Poised to Beat Earnings Estimates
Here are some stocks from the Zacks Retail-Wholesale space that investors may consider as our model shows that these have the right combination of elements to post an earnings beat this quarter:
Sprouts Farmers Market, Inc. (SFM - Free Report) currently has a Zacks Rank #1 and an Earnings ESP of +21.28%.
Wayfair Inc. (W - Free Report) has a Zacks rank #2 and an Earnings ESP of +2.62%.
Yum China Holdings Inc. (YUMC - Free Report) has a Zacks Rank #3 and an Earnings ESP of +18.37%.
Breakout Biotech Stocks with Triple-Digit Profit Potential
The biotech sector is projected to surge beyond $775 billion by 2024 as scientists develop treatments for thousands of diseases. They’re also finding ways to edit the human genome to literally erase our vulnerability to these diseases.
Zacks has just released Century of Biology: 7 Biotech Stocks to Buy Right Now to help investors profit from 7 stocks poised for outperformance. Our recent biotech recommendations have produced gains of +50%, +83% and +164% in as little as 2 months. The stocks in this report could perform even better.
See these 7 breakthrough stocks now>>