The 10-second takeaway
For the quarter ended March 25 (Q1), Domino's Pizza missed estimates on revenues and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue contracted slightly and GAAP earnings per share dropped significantly.
Gross margins improved, operating margins increased, net margins dropped.
Domino's Pizza booked revenue of $384.6 million. The nine analysts polled by S&P Capital IQ hoped for revenue of $402.1 million on the same basis. GAAP reported sales were 1.2% lower than the prior-year quarter's $389.2 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 12 earnings estimates compiled by S&P Capital IQ predicted $0.50 per share. GAAP EPS of $0.35 for Q1 were 19% lower than the prior-year quarter's $0.43 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 29.8%, 110 basis points better than the prior-year quarter. Operating margin was 17.4%, 70 basis points better than the prior-year quarter. Net margin was 5.4%, 160 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $392.8 million. On the bottom line, the average EPS estimate is $0.47.
Next year's average estimate for revenue is $1.70 billion. The average EPS estimate is $1.98.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 330 members out of 413 rating the stock outperform, and 83 members rating it underperform. Among 119 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 97 give Domino's Pizza a green thumbs-up, and 22 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 $39.10.
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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.