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Domino’s falls after missing earnings expectations in its first stuffed-crust quarter

Domino’s rose in early trading after reporting growing domestic sales since it’s rolled out stuffed crust, but has since given up those gains and is around 2% in midmorning trading.

The company reported adjusted earnings per share of $3.81, less than the $3.94 analysts polled by FactSet were expecting, which it attributed to a $27.4 million loss in its Chinese subsidiary, DPC Dash, and a $12.1 million increase in tax expenses.

But the company reported domestic same-store sales growth of 3.4%, more than the 2% analysts were penciling in. Overall, revenue rose to $1.15 billion, in line with analyst expectations.

This comes after the company added stuffed crust to its menu in March. Domino’s CEO Russell Weiner touted in a statement that the company now has “all the major crust types.”

Weiner told analysts on an earnings call that customer praise for this product has been significantly higher than any of our recent product launches. The average purchase increased 1.4% from the addition of stuffed crust, which is an upcharge.

So it’s not only driving deliciousness — the value is really good — but it’s also driving profit, Weiner said.

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SpaceX gets a wave of bullish ratings from Wall Street analysts

SpaceX received more than a dozen positive analyst calls on Tuesday — including from major Wall Street banks — as they initiate coverage on Elon Musk’s space and AI company.

SpaceX went public on June 12 at a $2.2 trillion valuation, the largest debut in history. While the company hasn’t yet posted a profit, it seems to have convinced Wall Street that it will get there and grow its valuation on the way.

Of the at least 17 analysts that gave a rating on Tuesday, all but one gave it a “buy” or “outperform” rating. MoffettNathanson was "neutral."

The ratings come as SpaceX joined the Nasdaq 100 index, a benchmark tech-heavy basket of companies that underpins millions of portfolios. The inclusion adds built-in demand for the stock from index funds and ETFs.

Still, SpaceX fell more than 5% on Tuesday amid a broader sell-off, and is currently effectively flat from its opening price of $150 a share.

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Nike sinks to lowest level since 2014 after warning of “challenged” sales environment in Q4 report

Did Nike do it?

Investors had a mixed reaction after the global sports apparel company reported its fourth quarter earnings on Tuesday after the bell. Shares initially rose 5% as Nike beat out Wall Street expectations amid a hefty tariff refund bonus. However, the stock then sank to its lowest level since August 2014 in postmarket trading.

Here are the Q4 numbers:

  • Revenue of $11.0 billion (estimate: $10.8 billion).

  • Adjusted earnings per share of $0.20 (estimate: $0.12).

Ahead of this report, Nike warned that results would be flattered by a one-time tariff refund (now estimated at roughly $0.52 per share for the bottom line). That gave the company an extra cushion in snapping its streak of seven quarters of year-over-year profit declines.

Over the past year, the company had been punished by tariffs on imported goods, stagnant consumer spending, and increasing competition from other footwear brands like New Balance, Adidas, and Hoka.

Outgoing CFO Matthew Friend deemed it an “increasingly challenging operating environment, where sell-through remains challenged.”

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