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Can Domino's Pizza Deliver on Earnings?

The stock has a mixed post-earnings past

Digital Content Manager
Jul 19, 2022 at 1:49 PM
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Domino's Pizza, Inc. (NYSE:DPZ) is gearing up to report its second-quarter earnings before the open this Thursday, July 21. Analysts are expecting the pizza company to post earnings of $2.19 per share. Below, we'll take a look at Domino's stock's post-earnings past, and if it can deliver on its quarterly report this time around. 

DPZ has a mixed post-earnings past. During its last eight reports, Domino's stock suffered four negative next-day returns, three positive returns, and remained unchanged the session following its March 2021 report. DPZ has averaged a 4.8% post-earnings swing during this time period, regardless of direction, which is much smaller than the 9.1% move options traders are pricing in this time around. 

Options traders have been incredibly bearish ahead of the event. The stock's Schaeffer's Volatility Index (SVI) of 1.92 sits in the 98th percentile of its annual range, meaning short-term options players have rarely been more put-biased during the past year. What's more, at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), the equity has a 10-day put/call volume ratio of 1.23, which stands higher than 87% of readings from the past 12 months. 

Options are certainly an intriguing route. The security's Schaeffer's Volatility Scorecard (SVS) sits at a 95 out of 100, meaning DPZ has exceeded option traders' volatility expectations during the past year.

DPZ was last seen up 0.3% to trade at $407.97. The stock has added 7.5% in the last month, bouncing nicely off its May 12 bottom at $321.15. Year-to-date, the shares have shed 27.5%.

 
 

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