Dick’s Sporting Goods Beats Profit Estimates and Boosts Guidance

1414
Dick's Sporting Goods

Dick’s Sporting Goods (NYSE: DKS)

Dick’s Sporting Goods, Inc. rose more than 4% before the opening bell on Wednesday after the company crushed profit expectations of Wall Street analysts and lifted its full-year EPS guidance. The stock has gained more than 25% since the beginning of the year through Tuesday.

DKS Earnings & Outlook

Third-quarter net income was $37.8 million, or $0.39 share, up from $36.9 million, or $0.35 per share in the same period last year.




Net sales totaled to $1.86 billion, compared with $1.94 billion in the earlier year quarter. Analysts had called for revenue of $1.88 billion, according to figures compiled by FactSet.

Comparable sales dropped 6.1% while analysts had expected comparable sales to decrease by 4.0%. Online sales climbed 16%, representing 12% of total sales during the quarter. Profit margin increased to 2% compared with 1.9% year over year.

The company also lifted its fiscal 2018 earnings forecast to the range of $3.15 to $3.25 per share from its earlier guidance of between $3.02 to $3.20 per share. Meanwhile, analysts expect the sporting goods retailer to post adjusted earnings of $3.13 per share. Dick’s Sporting also sees comparable sales growth of 3% to 4%.

Dick’s Sporting Goods CEO Comments

“We are pleased to deliver another quarter of strong earnings. Our continued improvements in gross margin and disciplined expense management more than offset our strategic investments, and contributed to increased profitability compared to last year,” said Edward W. Stack, Chairman and Chief Executive Officer.

Mr. Stack continued, “Comparable sales were within our range of expectations, including continued headwinds in the hunt and electronics categories. Our efforts have been focused on driving profitable sales and managing our business to deliver higher earnings. As a result, we are pleased to increase our fiscal 2018 earnings guidance for a third consecutive quarter.”

Dick’s Sporting Goods, Inc. Profile

Dick’s Sporting Goods, Inc. operates as a sporting goods retailer primarily in the eastern United States. It provides hardlines, including sporting goods equipment, fitness equipment, golf equipment, and hunting and fishing gear products; apparel; and footwear and accessories.

The company also owns and operates Golf Galaxy, Field & Stream, and other specialty concept stores; and e-commerce Websites, as well as Dick’s Team Sports HQ, a youth sports digital platform that offers free league management services, mobile apps for scheduling, communications and live scorekeeping, custom uniforms and fan wear, and access to donations and sponsorships.



As of October 8, 2018, it operated approximately 729 stores in 47 states. The company was formerly known as Dick’s Clothing and Sporting Goods, Inc. and changed its name to Dick’s Sporting Goods, Inc. in April 1999. Dick’s Sporting Goods, Inc. was founded in 1948 and is headquartered in Coraopolis, Pennsylvania. – Yahoo Finance

NO COMMENTS