Earnings Preview: Dick's Sporting Goods

| About: Dick's Sporting (DKS)

Dick's Sporting Goods (NYSE:DKS) is expected to report Q4 earnings before the market open on Tuesday, March 10 with a conference call scheduled for 10:00 am ET.


Analysts are looking for a profit of 53c on revenue of $1.23B. The consensus range is 48c-56c for EPS, and revenue of $1.19B-$1.29B, according to First Call.

Analyst Views

On February 5, the retailer forecast Q4 EPS at the mid-point of its 49c-56c prior guidance. The company sees a pre-tax non-cash impairment charge in the range of approximately $165M-$180M that will decrease net income by $144M-$153M, or approximately $1.29-$1.37 per diluted share in FY08, which includes a pre-tax non-cash impairment charge of approximately $140M-$150M for goodwill and other intangible assets acquired as part of the Golf Galaxy acquisition and approximately $25M-$30M for the write-down of Golf Galaxy, Dick's Sporting Goods, and Chick's Sporting Goods store assets. Dick's Sporting says its Q4 SSS fell 8.6%, and that it does not have plans to close stores and ended FY08 without any outstanding borrowings on its revolving credit facility.

Raymond James analyst Dan Wewer says shoppers are likely to remain cautious in the tough economy, but noted the company should benefit "if investors continue to search for stocks that will gain from an economic recovery."