Domino’s Pizza: Earnings Outlook Amid Market Challenges
With a market cap of $14.8 billion, Domino’s Pizza, Inc. (DPZ) stands as a prominent name in the global pizza market, known for its quick delivery and diverse menu. The company operates through three key segments: U.S. Stores, International Franchise, and Supply Chain. Emphasizing quality and customer satisfaction, Domino’s continues to expand both domestically and abroad.
Upcoming Earnings Announcement
On Monday, Feb. 24, DPZ is set to announce its fiscal Q4 earnings. Analysts anticipate the company will report a profit of $5.03 per share, reflecting a 12.3% increase from $4.48 per share in the same quarter last year. This follows a trend, as the company has surpassed Wall Street’s earnings estimates consistently over the last four quarters, including a 12.9% EPS beat in Q3.
Future Earnings Projections
For fiscal 2024, the Ann Arbor, Michigan-based company’s expected EPS is $16.82, which marks a 14.7% rise from its $14.66 in fiscal 2023.
Stock Performance Overview
Domino’s Pizza shares have gained 1.9% over the last year, falling short of the S&P 500 Index’s ($SPX) 24.4% increase and the Consumer Discretionary Select Sector SPDR Fund’s (XLY) 31.1% return during the same timeframe.
Mixed Reactions to Recent Earnings
After reporting a Q3 EPS of $4.19 that surpassed expectations, Domino’s shares dropped by over 1% on October 10, as revenue fell short of forecasts at $1.1 billion, despite a year-over-year growth of 5.1%. The company also lowered its growth forecast for global retail sales in 2024 to 6%, acknowledging difficulties in the broader economic landscape. In a surprising twist, the stock rallied over 5% the following day, buoyed by positive reactions to the EPS beat and upgrades from analysts, including Evercore ISI’s change to a “buy” rating and Morgan Stanley raising its price target to $520.
Analyst Insights on Domino’s Stock
The consensus among analysts regarding Domino’s Pizza’s stock leans towards cautious optimism, with a rating of “Moderate Buy.” Out of 29 analysts monitoring the company, 17 recommend “Strong Buy,” two suggest “Moderate Buy,” nine advise “Hold,” and one rates it as “Strong Sell.” This outlook is slightly more bullish than three months ago, when 16 analysts recommended “Strong Buy.”
Currently, DPZ is trading below the average analyst price target of $486.80.
On the date of publication, Sohini Mondal did not hold (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article are intended solely for informational purposes. For more information, please view the Barchart Disclosure Policy here. More news from Barchart
The views and opinions expressed herein are those of the author and do not necessarily reflect those of Nasdaq, Inc.
