Core Viewpoint - Domino's Pizza (DPZ) is anticipated to report a year-over-year increase in earnings driven by higher revenues for the quarter ended December 2024, with a consensus outlook suggesting a positive earnings picture [1][3]. Earnings Expectations - The upcoming earnings report is scheduled for February 24, 2025, with expectations that better-than-expected results could lead to a stock price increase, while disappointing results may cause a decline [2]. - The consensus EPS estimate for Domino's Pizza is 1.48 billion, up 5.4% from the previous year [3]. Estimate Revisions - Over the last 30 days, the consensus EPS estimate has been revised down by 0.67%, indicating a reassessment by analysts [4]. - The Most Accurate Estimate for Domino's Pizza is higher than the Zacks Consensus Estimate, resulting in a positive Earnings ESP of +0.24%, suggesting a bullish outlook from analysts [10][11]. Earnings Surprise Prediction - The Zacks Earnings ESP model indicates that a positive Earnings ESP reading is a strong predictor of an earnings beat, especially when combined with a Zacks Rank of 1 (Strong Buy), 2 (Buy), or 3 (Hold) [8]. - Domino's Pizza has a Zacks Rank of 3, which, along with the positive Earnings ESP, suggests a likelihood of beating the consensus EPS estimate [11]. Historical Performance - In the last reported quarter, Domino's Pizza exceeded the expected earnings of 4.19, resulting in a surprise of +12.94% [12]. - The company has successfully beaten consensus EPS estimates in all of the last four quarters [13]. Industry Context - Texas Roadhouse (TXRH), another player in the Zacks Retail - Restaurants industry, is expected to report earnings of $1.66 per share for the same quarter, indicating a year-over-year change of +53.7% [17]. - Texas Roadhouse's consensus EPS estimate has remained unchanged, but a lower Most Accurate Estimate has resulted in a negative Earnings ESP of -0.86%, complicating predictions for an earnings beat [18].
Domino's Pizza (DPZ) Earnings Expected to Grow: Should You Buy?