Market Minute: Last Earnings Before the Season Open

Domino’s Pizza (DPZ) reports 3Q earnings on Thursday before the bell, with an implied move of about $28. Zacks estimates EPS will be $3.65 with revenue of $1.10 billion. Ahead of the report, several analysts have cut their price targets, including Piper Sandler to $429 from $436 – still looking for upside – saying Domino’s is expected to miss same-store sales estimates. Piper Sandler expects same-store sales of about 3% instead, which it notes will drop its five-year stack to +20.4% growth. Bank of America is the holdout, lifting its price target to a stunning $582, or a run up of about 38%. Domino’s is flat in year-to-date trading, but up about 20% over the last year. Is it facing too much competition from burger chains, as Wedbush suggests, or will pizza win out?

Delta Airlines (DAL) also reports 3Q that morning, with an implied move about $2.50. Delta has had a strong year thus far, up around 23% year-to-date and up 34% from last year. Zacks expects it to report EPS of $1.59 and revenue of $15.6 billion. Investors should note that means over a -20% year-over-year drop for EPS. Airline stocks have had a difficult year beyond their control with continuing Boeing (BA) safety issues, geopolitical tensions, weather events, and a budget-conscious consumer. However, guidance is often key in a post-earnings move: will investors like the strategy Delta proffers, or will they see slow times ahead? Tune into Schwab Network for earnings breakdowns, expert interviews and more.