Domino's Pizza's Earnings Beat Last Year's by 18%

Seth Jayson, The Motley Fool
Updated

Domino's Pizza (NYS: 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.

Revenue details
 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 details
 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.

Margin details
 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.

Looking ahead
 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.

Investor sentiment
 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.

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The article Domino's Pizza's Earnings Beat Last Year's by 18% originally appeared on Fool.com.

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 ofMotley 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.

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