Dick’s Sporting Goods Gains on Boosted Guidance, Analyst Positive
2022.08.23 17:46
Dick’s Sporting Goods (DKS) Gains on Boosted Guidance, Analyst Positive
By Senad Karaahmetovic
Shares of Dick’s Sporting Goods (NYSE:DKS) are up over 2.5% in premarket Tuesday after the company raised its profit forecast for the full year.
DKS reported an adjusted EPS of $3.68 on sales of $3.11 billion to top the consensus of $3.57 on sales of $3.06 billion. The gross margin was reported at 36% while the estimate was 35.6%.
For the full year, Dick’s raised its adjusted EPS guidance to the range of $10.00 to $12.00, from the prior $9.15 to $11.70. The midpoint of the new forecast of $11.00 comes slightly ahead of the consensus of $10.94.
A Goldman Sachs analyst took note of the raised guidance that should result in DKS shares reacting positively to this earnings report.
“We note that DKS’s inventory level grew +49% in 2Q vs. the sales decline of -5%, but DKS believes their inventory stock is quite healthy at this point and that their product assortment is set up well for the back-to-school season,” the analyst said in a client note.
The GS analyst has a Buy rating and a $105.00 per share price target.
A Telsey Advisory Group analyst said the results were “encouraging” and showed DKS is “benefiting from strong demand for fitness and outdoor equipment and athletic apparel & footwear.”
“The stock is likely to be up today and possibly continue trending that way in the near term. Longer term, we continue to view Dick’s as a long-term share gainer through its unique assortment of national brands, differentiated private brands, and e-commerce, which is helped by its off-mall locations that provide convenient BOPIS and curbside pickup experiences,” the analyst wrote in a client note.
