Retail

What to Expect When Dick's Reports Tuesday Morning

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Dick’s Sporting Goods Inc. (NYSE: DKS) is scheduled to release its fiscal fourth-quarter financial results before the markets open on Tuesday. Analysts are looking for $1.22 in earnings per share (EPS) and $2.57 billion in revenue. In the same period of last year, the retailer said it had $1.07 in EPS and $2.49 billion in revenue.

The company previously issued guidance for the 2019 fiscal full year, in which it expects to see EPS in the range of $3.50 to $3.60. Considering the retailer has notched EPS for the past three quarters of $2.38, this guidance is calling for EPS in the range of $1.12 to $1.22 for the fiscal fourth quarter.

In the fiscal third quarter, consolidated same-store sales increased 6.0%, driven by increases in both average ticket and transactions, and represents the company’s strongest quarterly comp sales gain since 2013. Apart from the increases in both average ticket and transactions, Dick’s saw growth across each of its three primary categories of hardlines, apparel and footwear.

With this quarter reflecting holiday season sales, Dick’s will prove whether or not recent e-commerce trends, or Amazon for that matter, had a big impact this quarter.

Excluding Monday’s move, Dick’s Sporting Goods stock had underperformed the broad markets with a decline of about 29% year to date. In the past 52 weeks, the share price was down 7.5%.

Here’s what analysts were saying ahead of the report:

  • Nomura has a Hold rating.
  • Wedbush has a Neutral rating and a $40 price target.
  • Consumer Edge has an Equal Weight rating.
  • RBC has a Market Perform rating.

Dick’s Sporting Goods stock was down about 3% at $33.88 on Monday, in a 52-week range of $31.27 to $49.80. The consensus price target is $50.28.

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