Big 5 Sporting Goods Corporation | $BGFV Stock | Shares Soar on Better than Expected Earnings

Big 5 Sporting Goods Corporation

Big 5 Sporting Goods Corporation (NASDAQ: BGFV)


Big 5 Sporting Goods Corporation (BGFV), a national sporting goods retailer company yesterday reported their first quarter 2017 financial results.

Big 5 reported adjusted first quarter earnings of a  of $0.24 per share which beat analyst expectations of a loss of $0.14 per share. FireEye reported first quarter revenues $252.6 million which beat analyst expectations of $244.3 million.


Big 5 Sporting Goods Corporation  CEO’s  Comments

“We are pleased to begin fiscal 2017 with an extraordinarily strong performance,” said Steven G. Miller, the Company’s Chairman, President and Chief Executive Officer.  “We realized improvements in both customer transactions and average sale and produced same store sales increases for each of our major merchandise categories of apparel, footwear and hardgoods, while substantially improving merchandise margins for the period.  Our team did an outstanding job of extending our market share gains following the store closures by our competitors that occurred last year, as well as capitalizing on the favorable weather conditions that we experienced in a majority of our markets during the first quarter.  These efforts led to better than anticipated sales during March and allowed us to produce results meaningfully ahead of the guidance that we issued in late February.”  Globe Newswire


BGFV Technical Analysis

Big 5 Sporting Goods Corporation

BGFV opened trading yesterday at $15.35 which was up from the previous day’s trading close of $15.30. BGFV closed trading yesterday at $15.90 and spiked up after market to $17.75, equivalent to a 12% increase from the closing price. Taking a look at the daily chart we can see that the last time BGFV traded above these levels we have to go back to the week of December 21st, 2016 when it traded at $17.90.

Taking a closer look at the daily chart we can see that before the spike up BGFV had already been in an overall upward trend dating back to February 23rd when it traded at $13.35. BGFV has a float of 19.51 million shares and traded 1.73 times the normal daily trading volume on Tuesday.

For trading purposes, I would like to see BGFV open trading on Wednesday above $17.00 and if it does I would be looking to take a long position at the bell. My stop loss would be $0.20 from my entry position fearing anything more than that and the stock would start to fill in the gap up.


Company Profile

Big 5 Sporting Goods Corporation operates as a sporting goods retailer in the western United States. The company offers athletic shoes, apparel, and accessories, as well as a selection of outdoor and athletic equipment for team sports, fitness, camping, hunting, fishing, tennis, golf, winter and summer recreation, and roller sports.

It also provides private label items, such as shoes, apparel, camping equipment, fishing supplies, and snow sport equipment. The company sells private label merchandise under its own trademarks comprising Golden Bear, Harsh, Pacifica, and Rugged Exposure; and licensed trademarks, including Beach Feet, Bearpaw, Body Glove, Morrow, and The Realm.

As of January 1, 2017, it operated 432 stores and an e-commerce platform under the Big 5 Sporting Goods name. Big 5 Sporting Goods Corporation was founded in 1955 and is headquartered in El Segundo, California.  Yahoo Finance