Dick's Sporting Goods jumps 13% after beating earnings expectations and raising its full-year profit outlook


Shares of Dick’s Sporting Goods surged as much as 14% Tuesday after the company reported quarterly earnings that handily beat Wall Street expectations.

Here’s what the company reported versus what analysts surveyed by Bloomberg expected:

  • Adjusted earnings per share: 52 cents per share reported, versus 38 cents per share (expected)
  • Revenue: $US1.96 billion reported, versus $US1.91 billion (expected)
  • Same-store sales: +6% reported, versus +2.9% (expected)

The company also boosted its full-year profit outlook and is now expecting adjusted earnings between $US3.50 and $US3.60 per share, compared to its previous estimate of $US3.30 to $US3.45 per share.

The raised guidance comes after a quarter of strong sales, driven by increases in average ticket size and number of transactions. In the third quarter, same-store sales jumped the most since 2013, the company said in a press release.

“As we head into the holiday season, we remain very enthusiastic about our business,” said CEO Ed Stack in a press release. The retailer also saw growth across its three primary categories of hardlines, apparel, and footwear, he said.

At the same time, eCommerce sales increased 13%. The company opened new eCommerce fulfillment centres during the quarter and improved its website, according to a press release.

The company has a consensus target price of $US41.78 and six “buy” ratings, 17 “hold” ratings, and one “sell” rating according to Bloomberg data.

Dick’s Sporting Goods is up 26% year-to-date through Monday’s close.

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