By Mark Kalinowski
Published on July 16, 2020 at 12:00 AM
Earlier today, Domino’s (DPZ; Buy, $408.48) reported Q2 EPS of $2.99, well ahead of our $2.15 forecast and sell-side consensus (according to Consensus Metrix) of $2.27. Even excluding a better-than-expected tax rate (4.7% actual vs. our 19.4% estimate and consensus of 17.8%), Q2 EPS would have been +37 cents better than our forecast and +30 cents better than consensus. Better-than-expected G&A/ Revenues (9.6% actual vs. our 11.5% estimate and consensus of 10.6%) accounted for +23 cents of the EPS beat relative to consensus.
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By Mark Kalinowski
Published on April 23, 2020 at 12:00 AM
Earlier today, Domino’s (DPZ; Neutral, $364.00) reported Q1 EPS of $3.07, well above our $2.35 forecasts and sell-side consensus (according to Consensus Metrix) of $2.32. The earnings beat is largely due to tax rate, which came in at -3.7% (i.e., a helpful tax rate) vs. our 19.0% forecast and consensus of 18.7%. If the Q1 tax rate had been 19.0% (and nothing else in the Q1 income statement was changed), we estimate that Q1 EPS would have been about $2.40 — an earnings beat, but nevertheless not quite as good as what appeared at first glance. On today’s conference call, management commented that the Q1 tax rate reflected “tax benefits on equitybased compensation,” and that it anticipates continued volatility in the tax rate going forward.
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By Mark Kalinowski
Published on January 28, 2020 at 12:00 AM
After today’s (Tuesday’s) market close, Starbucks (SBUX; Buy) reported fiscal Q1 2020 (= calendar Q4 2019) adjusted EPS of $0.79, surpassing our $0.75 forecast and sell-side consensus (according to Consensus Metrix) of 0.76. U.S. same-store sales growth of +6% exceeded our +5% projection and sell-side consensus of +5%. Worldwide same-store sales advanced by +5%, matching our estimate and consensus.
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