Backed by strong sales growth coupled with operational efficiencies, Hibbett Sports, Inc.'s (HIBB) earnings of $0.30 per share for second-quarter fiscal 2013 surged 42.9% from the prior-year quarter, beating the Zacks Consensus Estimate of $0.27. Buoyed by better-than-expected results, the company raised its expectations for fiscal 2013.
The company now forecasts earnings in the range of $2.57-$2.67 per share, up from $2.50-$2.65 forecasted earlier. Management also remains committed to expand its store network by 55 to 60 new stores in fiscal 2013. Moreover, Hibbett's sharp focus on mid-sized and smaller markets and strategic mix of branded as well as localized merchandise provide it with an edge over its competition.
The company has a healthy balance sheet with no debt. Currently, we are maintaining a long-term Outperform recommendation on the stock.
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