Can Domino’s (DPZ) Cook Up a Positive Earnings Surprise?

What's Happening With DPZ View more about DPZ >

Domino’s Pizza (DPZ) reports third-quarter earnings before the market open October 8 with the consensus calling for earnings of $2.05 per share. During the same period last year the company earned $1.95 per share, and the stock has fallen a modest 2.1% on the year. 

Technical Analysis

DPZ was recently trading at $242.21 down $59.84 from its 12-month high and $21.31 above its 12-month low. InvestorsObserver’s Stock Score Report gives DPZ a 37 long-term technical score and a 42 short-term technical score. The stock has recent support above $225 and recent resistance below $250. Of the 16 analysts who cover the stock 10 rate it Strong Buy, 1 rate it Buy, 4 rate it Hold, 0 rate it Sell, and 1 rate it Strong Sell, DPZ gets a score of 47 from InvestorsObserver’s Stock Score Report.

Analysts' Thoughts

DPZ has traded lower on the year, due in part to a string of revenue misses. The company has posted weaker than expected sales each of the last five quarters which has kept pressure on the stock. The July selloff following the disappointing Q2 numbers drove the stock to its 52-week low. DPZ has started to recover but remains in the lower end of its 52-week range and faces a stiff level of resistance at $250. Despite trading in the lower end of its 52-week range, the stock is still trading at a high valuation at 27 times earnings, which leaves additional downside risk on another negative surprise. The 16 analysts that cover the stock have an average price target of $280, which suggests 15.7% upside.

DPZ
About Domino's Pizza Inc

Domino's is a dominant player in the $84 billion global quick service pizza category with a nearly 15% market share. The company generates revenue through franchise royalties, company-owned stores, and sales from 27 dough-manufacturing and supply chain centers. Of the 15,914 stores in 85 markets around the world as of fiscal 2018, 5,486 are operated by domestic franchisees, 10,038 by international franchisees, and 390 are company-owned. Domino's posted $13.5 billion in systemwide retail sales in 2018.

  • Last Price:
    $257.79
  • Previous Close:
    $254.77
  • Change:
    $3.02 (1.19%)
  • Open:
    $256.12
  • Volume:
    881,738
  • Average Volume (100 Day):
    883,442
  • Market Capitalization:
    $10.6 B
  • Day's Range:
    $252.50 - $259.10
  • Dividend Yield:
    1.02%
  • 52-week Range:
    $302 - $220.90
  • P-E:
    27.00
  • EPS:
    $8.96
  • Earnings Date:
    2/20/20
  • Ex Dividend Date:
    12/12/19
  • Sector:
    Consumer Cyclical
  • Industry:
    Restaurants
  • Analyst Average Recommendation:
    Moderate Buy

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