DPC (NYSE:DPC) Posts Quarterly Earnings Results, Beats Expectations By $0.34 EPS

DPC (NYSE:DPC) released its quarterly earnings results on Thursday. The company reported $0.49 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.15 by $0.34, FiscalAI reports. The firm had revenue of $308.10 million during the quarter. DPC updated its FY 2027 guidance to 1.000-1.100 EPS.

Here are the key takeaways from DPC’s conference call:

• DPC reported a record third quarter, with revenue up 39% to $308 million and adjusted EBITDA up 56% to $58 million; the adjusted EBITDA margin expanded 200 basis points to 18.9%. The company raised its 2026 guidance and introduced 2027 guidance, with midpoint adjusted EBITDA of $250 million.
• Five strategic customer partnerships are expected to generate more than $300 million of annual incremental revenue by 2031. The newest, a minimum 10-year IGT contract, is expected to contribute over $100 million in annual revenue when fully ramped, with the customer funding approximately 80% of its more than $200 million capacity investment.
• Management cited strong aerospace and heavy-duty gas turbine demand, constrained qualified casting capacity, and long customer order backlogs as growth drivers. It plans to expand capacity and said its IGT growth outlook excludes data-center-related demand.
• DPC acquired the remaining 50% stake in Montana Precision Products for $73 million, consolidating the established GE Aerospace joint venture; management expects the deal to be earnings-accretive within its first year. It also said the acquisition strengthens its aerospace position and could create opportunities to supply MPP with alloy.
• Elevated investment for capacity expansion is expected to weigh on near-term cash generation: 2027 free cash flow guidance is approximately break-even at the midpoint, including customer funding and total planned capital expenditure. Management said customer contributions will arrive in stages over 2027–2029.

DPC Price Performance

DPC traded up $2.12 during trading on Thursday, hitting $33.80. 2,105,596 shares of the stock traded hands, compared to its average volume of 1,405,605. DPC has a twelve month low of $25.00 and a twelve month high of $57.25. The firm has a market cap of $5.05 billion and a P/E ratio of 679.16. The company has a debt-to-equity ratio of 0.12, a quick ratio of 1.22 and a current ratio of 1.48. The business’s 50 day moving average is $35.89.

Analyst Ratings Changes

Several research firms recently issued reports on DPC. Wall Street Zen lowered DPC from a “hold” rating to a “sell” rating in a report on Saturday, September 19th. Zacks Research raised shares of DPC to a “hold” rating in a report on Tuesday, July 21st. Barclays assumed coverage on shares of DPC in a research report on Friday, October 9th. They set an “overweight” rating and a $49.00 price objective for the company. Jefferies Financial Group initiated coverage on DPC in a research note on Monday, July 20th. They issued a “buy” rating and a $56.00 price target for the company. Finally, Weiss Ratings cut DPC from a “sell (d)” rating to a “sell (d-)” rating in a report on Wednesday, October 28th. Four equities research analysts have rated the stock with a Buy rating, two have assigned a Hold rating and one has assigned a Sell rating to the company’s stock. According to MarketBeat, the company presently has an average rating of “Hold” and a consensus target price of $50.30.

Hedge Funds Weigh In On DPC

Several hedge funds and other institutional investors have recently modified their holdings of the business. Mudrick Capital Management L.P. bought a new stake in shares of DPC during the 2nd quarter worth $314,115,000. HBK Investments L P bought a new position in shares of DPC in the 2nd quarter valued at $72,750,000. William Blair Investment Management LLC boosted its stake in shares of DPC by 197.1% during the third quarter. William Blair Investment Management LLC now owns 1,901,643 shares of the company’s stock valued at $80,363,000 after purchasing an additional 1,261,638 shares in the last quarter. Irenic Capital Management LP bought a new stake in shares of DPC during the second quarter worth about $41,201,000. Finally, SurgoCap Partners LP acquired a new position in shares of DPC in the second quarter valued at approximately $31,336,000.

DPC Company Profile

DPC Dash Limited operates Domino’s Pizza restaurants in China under a master franchise arrangement. Its business includes preparing and selling pizzas and other menu items through company-operated stores, along with delivery and carryout services. The company serves customers in mainland China, where it has expanded its restaurant network across multiple cities. Its operations focus on adapting Domino’s menu and service model to local markets while maintaining the brand’s core offerings. DPC Dash was established in 2010 and is headquartered in Shanghai, China.