Dick's Sporting Goods' Stock Rises 8% On Earnings Beat
U.S. retailer Dick's Sporting Goods (DKS) has reported third-quarter financial results that beat Wall Street estimates, sending the company's stock up 8% in pre-market trading.
The company announced earnings per share (EPS) of $2.85 U.S. versus $2.44 U.S. that had been expected.
Revenue in the latest quarter came in at $3.04 billion U.S. compared to $2.94 billion U.S. that was forecast among analysts. Sales were up nearly 3% from a year earlier.
Looking forward, Dick's Sporting Goods said it now expects EPS of $11.45 U.S. to $12.05 U.S. for all of this year, up from previous guidance of $11.27 U.S. to $12.39 U.S.
The company also raised its comparable sales outlook slightly, saying it expects it to be up between 0.5% and 2%, compared to a previous range of flat to up 2%.
The latest results represent a bounce back quarter for Dick's, which shocked investors and analysts earlier this year when it slashed its outlook over theft that was occurring at its stores.
When Dick's reported its previous second-quarter results, its stock fell 24% after it blamed theft and aggressive markdowns for a 23% profit decline.
Now though, Dick's said that it's“excited” for the holiday shopping season and that it benefitted from strong back-to-school sales in August and September of this year.
The company said strong back-to-school sales have given it the confidence to raise its outlook and strike an upbeat tone for the holiday shopping season.
Prior to today (Nov. 21), the stock of Dick's Sporting Goods had been down 1% on the year and trading at $119.01 U.S. per share.
MENAFN provides the information “as is” without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the provider above.