Domino’s Pizza Quarterly Earnings Sneak Peek

Domino’s Pizza, Inc. (NYSE:DPZ) will unveil its latest earnings on Tuesday, July 24, 2012. Domino’s Pizza, through its subsidiaries, is engaged in retail sales of food through Domino’s Pizza stores, sales equipment and supplies to Domino’s Pizza stores, and receipt of royalties from domestic and international Domino’s Pizza franchise.

Domino’s Pizza, Inc. Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average estimate of analysts is for net income of 46 cents per share, a rise of 15% from the company’s actual earnings for the same quarter a year ago. During the past three months, the average estimate has moved down from 47 cents. Between one and three months ago, the average estimate moved down. It has been unchanged at 46 cents during the last month. For the year, analysts are projecting profit of $1.93 per share, a rise of 14.2% from last year.

Past Earnings Performance: Last quarter, the company missed estimates by 2 cents, coming in at net income of 47 cents per share versus a mean estimate of profit of 49 cents per share. In the fourth quarter of the last fiscal year, the company beat estimates by 4 cents.

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A Look Back: In the first quarter, profit fell 23.5% to $20.7 million (35 cents a share) from $27.1 million (43 cents a share) the year earlier, missing analyst expectations. Revenue fell 1.2% to $384.6 million from $389.2 million.

Balance Sheet Analysis: The company’s current ratio of assets to liabilities came in at 1.16 last quarter. The current ratio is an indication of a firm’s liquidity and ability to meet creditor demands and generally, for every dollar the company owes in the short term, it has that figure available in assets that can be converted to cash in the short term. The company regressed in this liquidity measure from 1.66 in the fourth quarter of the last fiscal year to the last quarter driven in part by an increase in liabilities. Current liabilities increased 87.2% to $369.1 million while assets rose 30.9% to $427.9 million.

Stock Price Performance: From June 19, 2012 to July 18, 2012, the stock price rose $2.82 (9.3%), from $30.17 to $32.99. The stock price saw one of its best stretches over the last year between January 26, 2012 and February 3, 2012, when shares rose for seven straight days, increasing 5.2% (+$1.67) over that span. It saw one of its worst periods between May 10, 2012 and May 18, 2012 when shares fell for seven straight days, dropping 11.1% (-$3.73) over that span.

Key Stats:

On the top line, the company is looking to get back on the right track after last quarter’s drop snapped a string of revenue increases. Revenue rose 6.2% in the second quarter of the last fiscal year, 8.3% in the third quarter of the last fiscal year and 4.5%in the fourth quarter of the last fiscal year before dropping in the first quarter.

After last quarter’s profit drop broke a string of income increases, this earnings announcement is definitely a chance for a rebound. Net income rose 11.6% in the second quarter of the last fiscal year, 33.1% in the third quarter of the last fiscal year and 27.9% in the fourth quarter of the last fiscal year before declining in the first quarter.

Analyst Ratings: There are mostly holds on the stock with seven of 11 analysts surveyed giving that rating.

Wall St. Revenue Expectations: On average, analysts predict $387.9 million in revenue this quarter, a rise of 0.8% from the year-ago quarter. Analysts are forecasting total revenue of $1.67 billion for the year, a rise of 1.2% from last year’s revenue of $1.65 billion.

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(Company fundamentals by Xignite Financials. Earnings estimates provided by Zacks)

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