Dick's Sporting Goods stock jumps after Q4 earnings beat
Shares of Dick's Sporting Goods (DKS) are surging Thursday afternoon after the sports retail outlet reported better-than-expected fourth-quarter earnings results. The company beat estimates on both the top and bottom lines, with revenue coming in at $3.88 billion, exceeding estimates of $3.78 billion. Additionally, Dick's Sporting Goods reported an adjusted earnings per share (EPS) of $3.85, outperforming analysts' expectations of $3.35 per share.
Yahoo Finance's Julie Hyman and Josh Lipton breaks down the details.
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Editor's note: This article was written by Angel Smith
Video Transcript
JOSH LIPTON: Dick's Sporting Goods. Just look at the move this stock is making in today's trade. It is surging, reporting, and delivering despite a difficult backdrop.
Comparable store sales, they climbed 2.8%. That easily beat what the Street was looking for. As for the outlook for the fiscal year, that was actually in line with consensus.
But I know some analysts covering the name, Julie, saying they think that guidance actually looks conservative in their opinion. Just given the results. The company posted.
Now going forward, companies also talking about ramping capital investments to both an e-commerce and brick and mortar stores. Investors clearly like what they see.
JULIE HYMAN: Yeah, they do. And this seemed like a surprise. Because we've had some weights and other areas that might have been read as sort of negative indicators for Dick's. Other spaces within retail.
Obviously, there's also the drama going on at Under Armor today that we're going to dig into a little bit later on here. But so there's relief, as well as just sort of pure positive reaction here. One analyst I was looking at from Truist talking about that the company's omnichannel offerings are helpful here.
In other words, in plain English, that they sell a lot of stuff online. And not just in their stores that it's both here. And DA Davidson pointing out Michael Baker over there a friend of the show said that Dick's is one of just two big box names that he covers that are guiding above consensus. So it just shows you that we're just not hearing that a lot right now.
JOSH LIPTON: Stock up nearly 50% already this year. What a move.
JULIE HYMAN: Wow. That is a big up move.
