Domino’s Pizza, Inc. (NYSE:DPZ) stock was down on Thursday, despite a positive earnings report for the third quarter of the year.
Domino’s Pizza, Inc. notes that its third quarter of 2017 includes earnings per share of $1.27 on revenue of $643.64 million. The company also reported net income of $65.37 million during the third quarter of the year.
Domino’s Pizza, Inc.’s strong earnings in the third quarter of 2017 put it above Wall Street’s estimates. Analysts were looking for the pizza company to report earnings per share of $1.23 on revenue of $627.35 million.
The earnings beat from Domino’s Pizza, Inc. in the third quarter of the year should have been good news for DPZ stock. However, it appears the hopes of some investors are dragging it down today. These investors pumped up the stock over the last few weeks and were expecting a bigger earnings beat than what was reported.
Domino’s Pizza, Inc. points out that it also changed how it reports financials starting in the first quarter of 2017. As a result, the company says that earnings reports in the first three quarters of 2017 aren’t comparable to the same periods from 2016.
Domino’s Pizza, Inc. also says that it has entered into a $1.0 billion accelerated share repurchase agreement. It notes that this agreement reached its end following the third quarter. The company says that in connection with this, it will be retiring 5,218,670 shares of DPZ stock for an average of $191.62. 4,558,863 of these shares were retired during the third quarter.
Domino’s Pizza, Inc. also gives a date for its quarterly dividend in its most recent earnings report. It says that a dividend of 46 cents per share will be payable to DPZ shareholders on Dec. 29, 2017. Investors must be on record as of Dec. 15, 2017 to receive the dividend.
DPZ stock was down 4% as of Thursday afternoon, but is up 25% year-to-date.
As of this writing, William White did not hold a position in any of the aforementioned securities.