Domino's EPS Expected Up 12.3% Amid Challenges

Domino's Pizza is projected to report a profit of $5.03 per share for Q4, indicating a 12.3% increase year-over-year. However, the company missed revenue expectations in Q3 and lowered its 2024 sales growth outlook, potentially impacting investor sentiment.

Date: 22-01-2025

AI Rating: 6

Earnings Per Share (EPS)

Domino's Pizza is set to announce Q4 earnings with a forecasted EPS of $5.03, which is a 12.3% increase from last year’s $4.48. Additionally, for fiscal 2024, EPS is expected to rise to $16.82, reflecting a 14.7% growth from the previous year. This positive trajectory suggests improving profitability and may lead to a favorable investor reaction.

Revenue Growth

Although Domino's reported a 5.1% year-over-year revenue increase to $1.1 billion in Q3, it fell short of consensus estimates. This miss, along with the lowered guidance for global retail sales growth to 6%, highlights potential headwinds for the company, which could temper investor enthusiasm despite the strong EPS figures.

Investor Sentiment

Despite missing revenue expectations, shares experienced short-term volatility, falling over 1% before rebounding by more than 5% the next day, showing that strong EPS results can offset some negative sentiment driven by revenue concerns. Additionally, analyst confidence appears to be cautiously optimistic, with a “Moderate Buy” rating and a majority suggesting a “Strong Buy.” This indicates that while there are challenges, the potential for growth remains recognized by analysts.

In summary, despite missing revenue expectations and issuing softer guidance for 2024, the anticipated growth in EPS may attract positive sentiment and bolster trader actions towards Domino's stock.

Stocks: DPZ