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Factors Setting the Tone for Domino's (DPZ) Q4 Earnings
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Domino's Pizza, Inc. (DPZ - Free Report) is scheduled to report fourth-quarter fiscal 2021 results on Mar 1, 2022, before the opening bell. In the last reported quarter, the company delivered an earnings surprise of 4.2%.
How are Estimates Placed?
The Zacks Consensus Estimate for fiscal fourth-quarter earnings is pegged at $4.30 per share, indicating an improvement of 24.3% from $3.46 reported in the year-ago quarter.
For revenues, the consensus mark is pegged at $1,394 million, suggesting growth of 2.8% from the prior-year quarter’s figure.
Let's take a look at how things have shaped up in the quarter.
Factors to Note
Domino's fiscal fourth-quarter performance is likely to have benefitted from a solid digital ordering system, higher global retail sales as well as expansion initiatives. This along with the return of non-delivery service methods across a number of international markets as well as the resumption of normal store hours in the reopening of stores (that were temporarily closed in certain international markets due to COVID) is likely to have aided the company’s performance in the fourth quarter.
The company continues to witness growth in terms of its carryout and delivery businesses. It has also been focusing on Car Side Delivery 2-Minute Guarantee with awareness campaigns. Increased revenues from franchise advertising and supply chain are likely to have driven the fourth-quarter top line. The Zacks Consensus Estimate for domestic revenues from franchise advertising and supply chain is pegged at $154 million and $812 million, suggesting an improvement of 0.7% and 2.7%, respectively, from the year-ago reported figure.
Growth in tickets and orders is likely to have driven comps in the to-be-reported quarter. Third-quarter fiscal 2021 marked the 111th consecutive quarter of positive same-store sales in its international business. With an emphasis on urban and higher-income footprint coupled with benefits from delivery fees and products mix, the momentum is likely to have sustained in the fourth quarter.
However, elevated wage pressures and commodities inflation are likely to have hurt margins in the fiscal fourth quarter. This along with dismal traffic (compared with pre-pandemic levels) and staffing challenges is likely to have affected the company’s orders and sales in the to-be-reported quarter.
What the Zacks Model Unveils
Our proven model does not 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.
Earnings ESP: Domino's has an Earnings ESP of -1.09%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Domino's carries a Zacks Rank #4 (Sell).
Stocks Poised to Beat Earnings Estimates
Here are some other stocks from the Zacks Retail-Wholesale sector that investors may consider as our model shows that these have the right combination of elements to post an earnings beat:
Shares of Designer Brands have gained 0.6% in the past year. DBI’ earnings topped the consensus mark in each of the trailing four quarters. The company has a trailing four-quarter earnings surprise of 116%, on average.
Costco Wholesale Corporation (COST - Free Report) has an Earnings ESP of +0.75% and a Zacks Rank #3.
Shares of Costco Wholesale have gained 56% in the past year. COST’s earnings topped the consensus mark thrice but missed the same on one occasion. The company has a trailing four-quarter earnings surprise of 8.3%, on average.
Abercrombie & Fitch Co. (ANF - Free Report) has an Earnings ESP of +2.35% and a Zacks Rank #3.
Shares of Abercrombie have gained 40.5% in the past year. ANF’s earnings topped the consensus mark in each of the trailing four quarters. The company has a trailing four-quarter earnings surprise of 112.5%, on average.
Image: Bigstock
Factors Setting the Tone for Domino's (DPZ) Q4 Earnings
Domino's Pizza, Inc. (DPZ - Free Report) is scheduled to report fourth-quarter fiscal 2021 results on Mar 1, 2022, before the opening bell. In the last reported quarter, the company delivered an earnings surprise of 4.2%.
How are Estimates Placed?
The Zacks Consensus Estimate for fiscal fourth-quarter earnings is pegged at $4.30 per share, indicating an improvement of 24.3% from $3.46 reported in the year-ago quarter.
For revenues, the consensus mark is pegged at $1,394 million, suggesting growth of 2.8% from the prior-year quarter’s figure.
Domino's Pizza Inc Price and EPS Surprise
Domino's Pizza Inc price-eps-surprise | Domino's Pizza Inc Quote
Let's take a look at how things have shaped up in the quarter.
Factors to Note
Domino's fiscal fourth-quarter performance is likely to have benefitted from a solid digital ordering system, higher global retail sales as well as expansion initiatives. This along with the return of non-delivery service methods across a number of international markets as well as the resumption of normal store hours in the reopening of stores (that were temporarily closed in certain international markets due to COVID) is likely to have aided the company’s performance in the fourth quarter.
The company continues to witness growth in terms of its carryout and delivery businesses. It has also been focusing on Car Side Delivery 2-Minute Guarantee with awareness campaigns. Increased revenues from franchise advertising and supply chain are likely to have driven the fourth-quarter top line. The Zacks Consensus Estimate for domestic revenues from franchise advertising and supply chain is pegged at $154 million and $812 million, suggesting an improvement of 0.7% and 2.7%, respectively, from the year-ago reported figure.
Growth in tickets and orders is likely to have driven comps in the to-be-reported quarter. Third-quarter fiscal 2021 marked the 111th consecutive quarter of positive same-store sales in its international business. With an emphasis on urban and higher-income footprint coupled with benefits from delivery fees and products mix, the momentum is likely to have sustained in the fourth quarter.
However, elevated wage pressures and commodities inflation are likely to have hurt margins in the fiscal fourth quarter. This along with dismal traffic (compared with pre-pandemic levels) and staffing challenges is likely to have affected the company’s orders and sales in the to-be-reported quarter.
What the Zacks Model Unveils
Our proven model does not 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.
Earnings ESP: Domino's has an Earnings ESP of -1.09%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Domino's carries a Zacks Rank #4 (Sell).
Stocks Poised to Beat Earnings Estimates
Here are some other stocks from the Zacks Retail-Wholesale sector that investors may consider as our model shows that these have the right combination of elements to post an earnings beat:
Designer Brands Inc. (DBI - Free Report) has an Earnings ESP of +12.28% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
Shares of Designer Brands have gained 0.6% in the past year. DBI’ earnings topped the consensus mark in each of the trailing four quarters. The company has a trailing four-quarter earnings surprise of 116%, on average.
Costco Wholesale Corporation (COST - Free Report) has an Earnings ESP of +0.75% and a Zacks Rank #3.
Shares of Costco Wholesale have gained 56% in the past year. COST’s earnings topped the consensus mark thrice but missed the same on one occasion. The company has a trailing four-quarter earnings surprise of 8.3%, on average.
Abercrombie & Fitch Co. (ANF - Free Report) has an Earnings ESP of +2.35% and a Zacks Rank #3.
Shares of Abercrombie have gained 40.5% in the past year. ANF’s earnings topped the consensus mark in each of the trailing four quarters. The company has a trailing four-quarter earnings surprise of 112.5%, on average.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.