The 10-second takeaway
For the quarter ended March 24 (Q1), Domino's Pizza beat slightly on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue grew. GAAP earnings per share grew significantly.
Margins increased across the board.
Domino's Pizza tallied revenue of $417.6 million. The 11 analysts polled by S&P Capital IQ looked for revenue of $411.4 million on the same basis. GAAP reported sales were 8.6% higher than the prior-year quarter's $384.6 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 $0.59. The 15 earnings estimates compiled by S&P Capital IQ averaged $0.55 per share. GAAP EPS of $0.59 for Q1 were 69% higher than the prior-year quarter's $0.35 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 31.1%, 130 basis points better than the prior-year quarter. Operating margin was 18.1%, 70 basis points better than the prior-year quarter. Net margin was 8.2%, 280 basis points better than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $400.5 million. On the bottom line, the average EPS estimate is $0.54.
Next year's average estimate for revenue is $1.77 billion. The average EPS estimate is $2.32.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 334 members out of 417 rating the stock outperform, and 83 members rating it underperform. Among 130 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 113 give Domino's Pizza a green thumbs-up, and 17 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 $51.04.
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