Hibbett Sports Inc.'s shares touched a record high Monday as investors focused on the bright spots in the retailer's third-quarter report.
THE SPARK: The sporting goods retailer reported Friday that in the quarter through Nov. 2, its net income fell 9 percent to $17.3 million, despite a 2 percent increase in sales. Hibbett earned 66 cents per share on revenue of $208 million. Analysts expected 65 cents per share and $207.2 million, according to FactSet. The company also raised the bottom end of its earnings guidance for the year by 3 cents, to between $2.68 and $2.77 per share.
ANALYSIS: Some analysts were lukewarm on the quarter. Canaccord's Camilo Lyon and Patrick O'Brien said in a research note that the company is managing its business well but traffic in the stores is still weak. They raised their target price on the stock by $1, to $53 — which means they still expect a decline in the stock price.
Others were more optimistic, such as Sterne Agee analysts Sam Poser and Ben Shamsian. They said in a research note that Hibbett is making the right investments, such as a new distribution center and new stores, which should pay off in coming years. The analysts, who have a "Buy" rating on the shares, raised their price target from $64 to $68.
STOCK ACTION: Shares of the Birmingham, Ala.-based company rose $1.14, or 1.8 percent, to $63.86 in afternoon trading. Its stock peaked at $64.56 earlier Monday, an all-time trading high for the company.