The 10-second takeaway
For the quarter ended June 16 (Q2), Domino's Pizza beat expectations on revenues and beat slightly on earnings per share.
Compared to the prior-year quarter, revenue expanded. GAAP earnings per share expanded significantly.
Gross margins dropped, operating margins expanded, net margins grew.
Domino's Pizza tallied revenue of $414.0 million. The 12 analysts polled by S&P Capital IQ expected a top line of $404.4 million on the same basis. GAAP reported sales were 10% higher than the prior-year quarter's $376.1 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 $0.57. The 15 earnings estimates compiled by S&P Capital IQ averaged $0.56 per share. GAAP EPS of $0.57 for Q2 were 21% higher than the prior-year quarter's $0.47 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 30.4%, 10 basis points worse than the prior-year quarter. Operating margin was 17.8%, 30 basis points better than the prior-year quarter. Net margin was 8.0%, 50 basis points better than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $399.4 million. On the bottom line, the average EPS estimate is $0.51.
Next year's average estimate for revenue is $1.78 billion. The average EPS estimate is $2.40.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 345 members out of 429 rating the stock outperform, and 84 members rating it underperform. Among 129 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 117 give Domino's Pizza a green thumbs-up, and 12 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 $57.00.
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