Get 40% Off
🚨 Volatile Markets? Find Hidden Gems for Serious OutperformanceFind Stocks Now

Domino's Earnings Report - No Sauce

Published 02/21/2019, 01:23 PM
Updated 07/09/2023, 06:31 AM

Summary
  • Domino's Pizza (AX:DMP) tanked 8% on Thursday morning, after the restaurant chain missed Wall Street expectation on earnings, revenue and same store sales.
  • Based on its market cycles, we expect more downside action in the coming weeks.

Weekly Domino's Pizza Enterprises

The company reported earnings per share of $2.62 and total revenue of $1.08 billion, below to analyst estimates of $2.69 and $1.10 billion. Same store sales rose by 5.6%, below the average estimate of 6.9%.

Despite missing these key metrics, CEO Ritch Allison explained that, "I am pleased with our fourth quarter, which capped a very strong 2018. Our long-game approach, driven by fundamentals and the finest franchisee base in across the globe, continues to pace the industry."
Looking at the market cycles for DPZ, we can see that the stock has likely started the declining phase of its current cycle. The downside gap suggests declining phase has taken hold and a major top is in place. Our near term target is $230, with a probable sub $200 price later in the year.

For more from Slim, or to learn about cycle analysis, check out the askSlim Market Week show every Friday on our YouTube channel.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.