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Dick's Sporting Goods Inc. (NYSE:DKS) is scheduled to release its second-quarter 2011 results on Tuesday, August 16, 2011. The Zacks Consensus Estimate is 50 cents a share for the second quarter of fiscal 2011. This represents a year-over-year estimated growth of 16.3%.

First Quarter Performance

Dick's Sporting Goods, an authentic full-line sporting goods retailer, posted strong first-quarter 2011 results, ended April 30, 2011, on the heels of higher sales and improved margins.

Quarterly earnings climbed to 30 cents a share from the year-ago level of 22 cents a share, handily outpacing its earnings guidance range of 26 cents to 28 cents a share. Dick’s also inched past the Zacks Consensus Estimate of 29 cents.

An increase of 2.1% in consolidated comparable-store sales (comps) and opening of new stores led to a rise of 6.3% year over year in total revenue, which climbed to $1,113.8 million. However, total revenue fell short of the Zacks Consensus Estimate of $1,141.0 million.

Earnings Guidance

For the second quarter of fiscal 2011, Dick’s expects earnings per share to be between 47 cents and 49 cents and comps to rise in a band of 3% to 5.7%.

For full year 2011, management now expects earnings in the range of $1.91 to $1.93 per share, up from the prior guidance range of $1.89 to 1.91 per share, while comps are expected to be up 3.0%.

Agreement of Analysts

Over the last 30 days, none out of 23 analysts moved the estimate in either direction for the second quarter of fiscal 2011. This implies that most of the analysts are neutral on the outlook and do not foresee any upward or downward pressure. A similar placid trend has been noticed for fiscal 2011 over the last 30 days.

In the last 7 days, none of the analysts have changed their estimates for the second quarter of 2011 and fiscal 2011.

Magnitude of Estimate Revisions

With no significant effect of estimate revisions in the last 30 days, the consensus estimates, for the second quarter of fiscal 2011 and fiscal 2011, have remained stagnant at 50 cents and $1.94 per share, respectively.

Earnings Surprise

Considering earnings surprises, the stock has been steady over the last four quarters, with positive surprises ranging between a low of 3.5% to a high of 29.4%. The average remained positive at 10.8%.

Our Recommendation

We have maintained our long-term Neutral recommendation on Dick. On the positive, the company has a Zacks #2 Rank, implying a short-term Buy rating on the stock.

Pittsburgh-based Dick's Sporting Goods is a full-line sporting goods retailer offering a broad assortment of brand name sporting goods equipment, apparel and footwear in a specialty store environment.

Dick’s remains the dominant player in the industry with significant store expansion and potential share gain opportunities in the U.S. We remain optimistic about the company’s competitive position, quality of management and consistency of earnings growth.

However, the sporting goods market is highly competitive in nature and Dick’s failure to compete effectively in terms of price, quality or product will hamper its growth potential. The company faces stiff competition from Foot Locker Inc. (NYSE:FL) and others.

Source: Dick's Sporting Goods: Earnings Preview