Domino's Pizza (NYSE: DPZ ) reported earnings on July 24. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended June 17 (Q2), Domino's Pizza missed estimates on revenues and met expectations on earnings per share.
Compared to the prior-year quarter, revenue dropped slightly and GAAP earnings per share expanded significantly.
Margins improved across the board.
Domino's Pizza reported revenue of $376.1 million. The 10 analysts polled by S&P Capital IQ predicted revenue of $388.0 million on the same basis. GAAP reported sales were 2.3% lower than the prior-year quarter's $384.9 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.47. The 13 earnings estimates compiled by S&P Capital IQ anticipated $0.47 per share. GAAP EPS of $0.47 for Q2 were 18% higher than the prior-year quarter's $0.40 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 30.5%, 170 basis points better than the prior-year quarter. Operating margin was 17.5%, 140 basis points better than the prior-year quarter. Net margin was 7.5%, 90 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $374.5 million. On the bottom line, the average EPS estimate is $0.41.
Next year's average estimate for revenue is $1.65 billion. The average EPS estimate is $1.93.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 336 members out of 416 rating the stock outperform, and 80 members rating it underperform. Among 115 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 92 give Domino's Pizza a green thumbs-up, and 23 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Domino's Pizza is outperform, with an average price target of $38.64.
Over the decades, small-cap stocks, like Domino's Pizza have provided market-beating returns, provided they're value priced and have solid businesses. Read about a pair of companies with a lock on their markets in "Too Small to Fail: Two Small Caps the Government Won't Let Go Broke." Click here for instant access to this free report.