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DICK'S Sporting (DKS) Tops Q4 Earnings & Sales; Stock Dips

Zacks Equity Research

DICK'S Sporting Goods, Inc. DKS, the sporting goods retailer, came out with fourth-quarter fiscal 2016 results, wherein adjusted earnings of $1.32 per share jumped 17% year over year, also coming ahead of the Zacks Consensus Estimate of $1.29. Results were mainly driven by robust comparable store sales (comps), coupled with gross margin expansion.   

Dick's Sporting Goods Inc Price and EPS Surprise

Dick's Sporting Goods Inc Price and EPS Surprise | Dick's Sporting Goods Inc Quote

Earnings Estimate Revision: The Zacks Consensus Estimate for fiscal 2017 has shown a slight downtrend over the last 7 days. However, in the trailing four quarters (excluding the quarter under review), the company has outperformed the Zacks Consensus Estimate by an average of 8.8%.

Revenues: Dick's Sporting generated total sales of nearly $2,483.4 million that jumped 10.9% year over year, and also cruised ahead of the Zacks Consensus Estimate of $2,468 million. Further, consolidated comps grew about 5%, including 5.3% comps growth at DICK’S Sporting Goods, along with a 13.2% increase at Golf Galaxy comps.

Key Events: On Feb 9, 2017, management declared a 12% hike in quarterly cash dividend to 17 cents per share on the Company's Common Stock and Class B Common Stock. This is payable on Mar 31, 2017 to shareholders of record as on Mar 10.

Further, Dick's Sporting repurchased roughly 0.6 million shares worth $29.7 million during the quarter. In fiscal 2016, the company bought back 3.1 million shares for $145.7 million, following which it had shares worth roughly $1.041 million remaining under its standing authorization that extends through 2021.

Outlook: Following the results, the company issued its fiscal 2017 outlook. For fiscal 2017, which will have an additional week, the company expects adjusted earnings to range from $3.65 - $3.75 per share. Further, consolidated comps growth is anticipated in a range of 2% - 3%.

For the first-quarter of fiscal 2017, the company envisions earnings per share to lie in the band of 50 – 55 cents, while it anticipates comps growth to range from 3% to 4%.

Zacks Rank: Currently, Dick's Sporting carries a Zacks Rank #3 (Hold) which is subject to change following the earnings announcement.

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Stock Movement: Dick's Sporting shares fell over 3% during pre-market trading hours following the fourth-quarter results.

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