Domino's Pizza (DPZ) Q3 Earnings Surpass Estimates

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Domino's Pizza (DPZ) came out with quarterly earnings of $4.19 per share, beating the Zacks Consensus Estimate of $3.71 per share. This compares to earnings of $4.18 per share a year ago. These figures are adjusted for non-recurring items.

This quarterly report represents an earnings surprise of 12.94%. A quarter ago, it was expected that this pizza chain would post earnings of $3.70 per share when it actually produced earnings of $4.03, delivering a surprise of 8.92%.

Over the last four quarters, the company has surpassed consensus EPS estimates four times.

Domino's Pizza, which belongs to the Zacks Retail - Restaurants industry, posted revenues of $1.08 billion for the quarter ended September 2024, missing the Zacks Consensus Estimate by 1.72%. This compares to year-ago revenues of $1.03 billion. The company has topped consensus revenue estimates just once over the last four quarters.

The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.

Domino's Pizza shares have added about 0.2% since the beginning of the year versus the S&P 500's gain of 21.4%.

What's Next for Domino's Pizza?

While Domino's Pizza has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?

There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.

Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.

Ahead of this earnings release, the estimate revisions trend for Domino's Pizza: mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.

It will be interesting to see how estimates for the coming quarters and current fiscal year change in the days ahead. The current consensus EPS estimate is $4.91 on $1.51 billion in revenues for the coming quarter and $16.24 on $4.79 billion in revenues for the current fiscal year.

Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Retail - Restaurants is currently in the bottom 38% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.

Chuy's Holdings (CHUY), another stock in the same industry, has yet to report results for the quarter ended September 2024.

This restaurant operator is expected to post quarterly earnings of $0.45 per share in its upcoming report, which represents a year-over-year change of +2.3%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days.

Chuy's Holdings' revenues are expected to be $118.11 million, up 4.1% from the year-ago quarter.

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Stocks Down Pre-Bell Ahead of Key Inflation Data; Asia Gains, Europe Falls

MT Newswires

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Nasdaq, S&P 500 Futures Slip As September CPI Data Looms, Tesla On Radar Ahead Of Robotaxi Event: Strategist Offers Stock Tips Aligned With Presidential Candidates' Trade Policies

Benzinga

The imminent release of the September consumer price inflation report is keeping sentiment guarded as the index futures trade modestly lower early Thursday. Traders may have to navigate past the September consumer price inflation report and the weekly jobless claims data, both of which have implications for rates. The inflation data is widely expected to confirm the sustained downtrend, while jobless claims may have perked up in the recent week.

China announced stimulus to support the domestic stock market, which sent stocks in the mainland and Hong Kong higher. Crude oil and gold are all weaker but the bond yield has ticked. Traders may stay focused on the after-effects of Hurricane Milton and the simmering tensions in the Middle East.

Futures	Performance (+/-)
Nasdaq 100	-0.15%
S&P 500	-0.12%
Dow	-0.09%
R2K	-0.24%

In premarket trading on Thursday, the SPDR S&P 500 ETF Trust edged down 0.13% to $576.41 and the Invesco QQQ ETF moved down 0.16% to $492.35, according to Benzinga Pro data.

Cues From Last Session:

Strength in IT, financial, industrial and healthcare stocks pushed the Dow Jones Industrial Average and the S&P 500 Index to fresh records on Wednesday. The S&P 500 Index also clocked a new intraday high. While the tech-heavy Nasdaq Composite also rose, it ended at its highest level since July 16.

Stocks largely ignored the Hurricane Milton threat, which made its landfall in Florida, and digested comments from Fed officials and also information gleaned out of the Fed minutes.

Among S&P 500 sector classes, only communication services and utility stocks experienced some weakness.

Index	Performance (+/)	Value
Nasdaq Composite	+0.60%	18,291.62
S&P 500 Index	+0.71%	5,792.04
Dow Industrials	+1.03%	42,512.00
Russell 2000	+0.26%	2,200.59

Insights From Analysts:

A Morgan Stanley strategist on Wednesday weighed on the impact of the potential trade policies of the two presidential candidates. “Trade policy is among the top policy areas that may be most sensitive to the presidential election result,” said Monica Guerra, Head of Policy, Morgan Stanley Wealth Management.

The impact of tariffs on the economy could be wide-ranging, pressuring consumers and affecting growth, inflation and stock market performance, she said. Vice President Kamala Harris’ trade policy appears to be a continuation of President Joe Biden's, but is still opaque, creating some uncertainty for investors, while Republican candidate Donald Trump’s proposals included increasing tariffs on China as well as a universal tariff, which could pressure productivity, growth and add inflationary pressure, she said.

The strategist recommended investors mitigate the impact of tariffs by considering defensive sectors such as consumer staples, healthcare and utilities, as well as select retailers with less exposure to offshore production.

See Also: How To Trade Futures

Upcoming Economic Data:

The Labor Department is scheduled to release its customary weekly jobless claims report at 8:30 a.m. EDT. Economists, on average, expect the number of individuals claiming unemployment benefits to come in at 230,000 for the week ended Oct. 5, up from 225,000 in the previous week.
The September CPI report, due at 8:30 a.m. EDT, is expected to show a 0.1% month-over-month increase in the headline number, a tick down from the 0.2% growth in August. The annual rate of CPI is expected to slow from 2.5% to 2.3%. The monthly and annual core CPI rates for September are expected at 0.2% and 3.2%, respectively, compared to August’s 0.3% and 3.2%.
Among the Fed speakers due to speak are:
- Federal Reserve Governor Lisa Cook: 9:15 a.m. EDT
- Chicago Fed President Austan Goolsbee (TV interview): 10 a.m. EDT
- Richmond Fed President Tom Barkin: 10:30 a.m. EDT
- New York Fed President John Williams: 11 a.m. EDT
The Treasury will auction four- and eight-week bills at 11:30 a.m. EDT and 30-year bonds at 1 p.m. EDT.

Stocks In Focus:

GXO Logistics, Inc. , a spin-off unit of XPO, Inc. , rose about 6% in premarket trading after Bloomberg said the company is rumored to be exploring a potential sale.
10x Genomics, Inc. slumped over 21% following the company’s preannouncement.
Tesla, Inc. rose over 1% ahead of its Robotaxi event.
Delta Air Lines, Inc. , Domino’s Pizza, Inc. and Tilray Brands, Inc. are among the notable companies due to report their quarterly results ahead of the market open.

Commodities, Bonds And Global Equity Markets:

Crude oil futures climbed sharply ahead of the inflation data and gold futures were modestly higher. Bitcoin pulled back nearly 2% over the past 24 hours and has slipped under $61K. The 10-year Treasury note yield rose 1.5 points to 4.082%.

Most major Asian markets ended higher for the day, as domestic traders drew inspiration from the positive close on Wall Street overnight. The Chinese and Hong Kong markets led the gains in the region after the People’s Bank of China announced new stimulus to support the stock market.

On the other hand, European stocks retreated in early trading

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S&P Settles At Record High As Apple, Amazon Shares Surge: Investor Optimism Improves Ahead Of Inflation Data

Benzinga

The CNN Money Fear and Greed index showed some improvement in the overall market sentiment, while the index remained in the “Greed” zone on Wednesday.

U.S. stocks settled higher on Wednesday, with the Dow Jones and S&P 500 settling at record levels during the session. Tech stocks were among the top gainers, with shares of Amazon.com, Inc. and Apple Inc. adding more than 1% on Wednesday.

Investors digested the minutes from the September Federal Open Market Committee (FOMC) meeting, which revealed extensive debate over whether to cut rates by 25 or 50 basis points. Ultimately, the committee opted for the larger 50-basis-point cut, but the discussion underscored the ongoing uncertainty about the Federal Reserve’s next moves.

On the economic data front, U.S. wholesale inventories increased by 0.1% month-over-month to $904.8 billion in August, compared to the preliminary estimate of a 0.2% gain and versus a revised 0.2% rise in the previous month.

Data on Consumer Price Index inflation will be released on Thursday.

Most sectors on the S&P 500 closed on a positive note, with healthcare, information technology, and industrials stocks recording the biggest gains on Wednesday. However, utilities and communication services stocks bucked the overall market trend, closing the session lower.

The Dow Jones closed higher by around 432 points to 42,512.00 on Wednesday. The S&P 500 rose 0.71% to 5,792.04, while the Nasdaq Composite climbed 0.60% at 18,291.62 during Wednesday's session.

Investors are awaiting earnings results from Delta Air Lines, Inc. , Domino’s Pizza, Inc. and Tilray Brands, Inc. today.

What is CNN Business Fear & Greed Index?

At a current reading of 72.2, the index remained in the “Greed” zone on Wednesday, versus a prior reading of 70.6.

The Fear & Greed Index is a measure of the current market sentiment. It is based on the premise that higher fear exerts pressure on stock prices, while higher greed has the opposite effect. The index is calculated based on seven equal-weighted indicators. The index ranges from 0 to 100, where 0 represents maximum fear and 100 signals maximum greediness.

Read Next:

Top 3 Industrials Stocks Which Could Blast Off This Quarter

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Delta Air Lines, Domino's Pizza And 3 Stocks To Watch Heading Into Thursday

Benzinga

With U.S. stock futures trading lower this morning on Thursday, some of the stocks that may grab investor focus today are as follows:

Wall Street expects Delta Air Lines, Inc. to report quarterly earnings at $1.52 per share on revenue of $14.67 billion before the opening bell, according to data from Benzinga Pro. Delta Air shares gained 0.1% to $51.00 in after-hours trading.
AZZ Inc. reported better-than-expected earnings for its second quarter, while sales missed estimates. The company said it sees FY24 adjusted earnings of $4.70 to $5.10 per share on sales of $1.525 billion to $1.625 billion. AZZ shares fell 1.3% to $80.50 in the after-hours trading session.
Analysts are expecting Domino’s Pizza, Inc. to post quarterly earnings at $3.65 per share on revenue of $1.1 billion. The company will release earnings before the markets open. Domino’s shares gained 0.7% to $416.24 in after-hours trading.

Check out our premarket coverage here

10x Genomics, Inc. reported preliminary revenue of $151.7 million for the third quarter, down 1% year over year. 10x Genomics shares dipped 26% to $15.40 in the after-hours trading session.
Analysts expect Tilray Brands, Inc. to post a quarterly loss at 4 cents per share on revenue of $219.3 million before the opening bell. Tilray Brands shares fell 1.2% to close at $1.63 on Wednesday.

Check This Out:

Top 3 Industrials Stocks Which Could Blast Off This Quarter

Photo courtesy: Delta Air Lines

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What To Watch In The Day Ahead - Thursday, October 10

Reuters

The Day Ahead is an email and PDF publication that includes the day's major stories and events, analyses and other features. To receive The Day Ahead, Eikon users can register at DAY/US. Thomson One users can register at RT/DAY/US. All times in ET/GMT

The Labor Department is expected to show consumer price index (CPI) likely rose 0.1% in September, after rising 0.2% in August. Annually, the CPI is projected to show a 2.3% increase in September, compared with a 2.5% gain in the previous period. Core CPI is expected to post a 0.2% increase in September after recording a 0.3% rise in August. On an annual basis, the core CPI likely rose 3.2% in September, matching August's rise. Separately, a Labor Department report is expected to show initial jobless claims likely rose to 230,000 for the week ended October 5, after a reading of 225,000 the previous week. Continued jobless claims are likely to have risen to 1.830 million in the week ended September 28, from 1.826 million.

Elon Musk is set to unveil Tesla's much-awaited robotaxi product at an event in Los Angeles. Analyst and investors expect a prototype for its self-driving cab as well as plans for a ride-hailing app that will allow Tesla owners to list their vehicles to run as robotaxis.

Federal Reserve Board Governor Lisa Cook will be speaking on "Entrepreneurship and Innovation" before the Women for Women Summit presented by the College of Charleston School of Business, in Charleston, South Carolina. (0915/1315) Separately, Federal Reserve Bank of Richmond President Thomas Barkin will participate in a fireside chat, "2025 Economic Outlook and Beyond" before the Virginia Maritime Association 2024 International Trade Symposium in Norfolk, Virginia. (1030/1430) Additionally, Federal Reserve Bank of New York President John Williams is scheduled to participate in a moderated discussion on the economic outlook and monetary policy before an event organized by Binghamton University in Vestal, New York. (1100/1500)

Domino's Pizza's same-store sales growth is expected to slow sequentially when it reports third-quarter results, on choppy consumer spending across the U.S. and in international markets despite higher promotions. Investors will watch out for comments on demand trends in international markets and expectations for the holiday season.

Delta Air Lines is expected to report lower quarterly profit due to the disruptions caused by a global cyber outage. The focus, however, will be on the strength of travel demand as well as the airline's pricing power.

Argentina's inflation data for September is scheduled for release. Argentina's monthly inflation rate for September is likely to come in at 3.5%, slowing down from August's 4.2% rate. Inflation in the 12 months through September likely fell to 209.1% in September from 236.7% in August. Brazil's statistics agency IBGE is expected to show retail sales likely slipped 0.5% in August, after rising 0.6% in July. Peru's Central Bank is expected to announce its interest rate decision. Peru's trade balance data for October is also on the calendar.

(Reporting by Nachiket Tekawade; Editing by Shreya Biswas)

(( Nachiket.Tekawade@thomsonreuters.com ;))

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