Domino's To Report Q4 Earnings: What's In The Offing?

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Domino's Pizza, Inc. (DPZ - Free Report) is scheduled to report fourth-quarter fiscal 2022 results on Feb 23, before the opening bell. In the last reported quarter, the company’s earnings missed the Zacks Consensus Estimate by 5.4%.

Q4 Estimates

The Zacks Consensus Estimate for fiscal fourth-quarter earnings is pegged at $3.92 per share, suggesting a decline of 7.8% from the prior-year quarter. Over the past seven days, earnings estimates have been revised downward by 0.3%. The Zacks Consensus Estimate for revenues is pegged at $1.44 billion, suggesting an improvement of 6.9% from the prior-year reported figure.

Factors to Note

Domino's fiscal fourth-quarter top line is likely to have benefited from solid international expansion, sales-building efforts, and robust digitalization. An increase in sales of U.S. company-owned stores, as well as supply-chain revenues, is likely to have aided the top line.

We expect U.S. company-owned stores, U.S. franchise advertising, and supply-chain revenues to increase by 3%, 1.3%, and 6.8% to $145.5 million, $145.1 million, and $855.1 million, respectively.

The company has been witnessing growth in terms of its carryout and delivery businesses. It has been focusing on Car Side Delivery 2-Minute Guarantee with awareness campaigns. Increased revenues from franchise advertising and supply chain are anticipated to have driven the fiscal fourth-quarter performance.

However, elevated wage pressures and commodities inflation are likely to have negatively impacted the company’s bottom line. We expect the total cost of sales to increase 8.2% year over year to $905.6 million. The gross margin in the quarter is likely to be 36.1% compared with the 37.7% reported in the prior-year quarter.

What the Zacks Model Unveils

Our proven model doesn’t conclusively predict an earnings beat for Domino's this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy), or 3 (Hold) increases the odds of an earnings beat.

Earnings ESP: Domino's has an Earnings ESP of -1.76%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: Domino's currently carries a Zacks Rank #3.

Domino's Pizza Inc Price and EPS Surprise