Revenue Beat: Domino's Pizza Group plc Exceeded Revenue Forecasts By 5.5% And Analysts Are Updating Their Estimates
Investors in Domino's Pizza Group plc (LON:DOM) had a good week, as its shares rose 3.3% to close at UK£2.12 following the release of its half-yearly results. Results overall were respectable, with statutory earnings of UK£0.15 per share roughly in line with what the analysts had forecast. Revenues of UK£354m came in 5.5% ahead of analyst predictions. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.
Taking into account the latest results, Domino's Pizza Group's ten analysts currently expect revenues in 2026 to be UK£705.4m, approximately in line with the last 12 months. Statutory earnings per share are predicted to expand 14% to UK£0.18. In the lead-up to this report, the analysts had been modelling revenues of UK£700.1m and earnings per share (EPS) of UK£0.18 in 2026. The consensus analysts don't seem to have seen anything in these results that would have changed their view on the business, given there's been no major change to their estimates.
View our latest analysis for Domino's Pizza Group
There were no changes to revenue or earnings estimates or the price target of UK£2.26, suggesting that the company has met expectations in its recent result. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. Currently, the most bullish analyst values Domino's Pizza Group at UK£4.50 per share, while the most bearish prices it at UK£1.45. We would probably assign less value to the analyst forecasts in this situation, because such a wide range of estimates could imply that the future of this business is difficult to value accurately. With this in mind, we wouldn't rely too heavily the consensus price target, as it is just an average and analysts clearly have some deeply divergent views on the business.
Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. These estimates imply that revenue is expected to slow, with a forecast annualised decline of 0.6% by the end of 2026. This indicates a significant reduction from annual growth of 5.2% over the last five years. By contrast, our data suggests that other companies (with analyst coverage) in the same industry are forecast to see their revenue grow 6.1% annually for the foreseeable future. So although its revenues are forecast to shrink, this cloud does not come with a silver lining - Domino's Pizza Group is expected to lag the wider industry.
The Bottom Line
The most important thing to take away is that there's been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share estimates. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that Domino's Pizza Group's revenue is expected to perform worse than the wider industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.
Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. At Simply Wall St, we have a full range of analyst estimates for Domino's Pizza Group going out to 2028, and you can see them free on our platform here..
However, before you get too enthused, we've discovered 3 warning signs for Domino's Pizza Group (1 is potentially serious!) that you should be aware of.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.