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Some excellent results were delivered by one of my oldest holdings, Dick's Sporting Goods (NYSE:DKS) this morning. DKS reported non-GAAP diluted EPS of 32 cents versus 22 cents a year ago and expectations of 26 cents. Same-store sales rose 4.1% and total sales rose 9.3% year-over-year to $1.18 billion. Analysts expected net sales of $1.16 billion in the 3rd quarter.

For FY2011 the company increased guidance by 7 cents for non-GAAP EPS to a new range of $2.01 to $2.03. An additional penny was added to 4th quarter guidance for a range of 87 to 89 cents versus consensus estimates of 87 cents. Toward the end of the 3rd quarter and in early 4th quarter DKS opened several new stores, which are not in the current quarter’s results but point to strong forward growth. A total of 25 new stores were opened in the second half of 2011 bringing the total store count to 474 Dick's Sporting Goods stores in 42 states and 81 Golf Galaxy stores in 30 states. As I mentioned, there is still plenty of room for growth at Dick’s.

In what was a bonus announcement for shareholders, Dick’s Sporting Goods’ board of directors declared an annual dividend of 50 cents payable on December 28 for shareholders of record on December 7. In the future, the company intends to pay dividends on a quarterly basis. At the 50 cent payout, the yield is 1.26% based on yesterday’s closing price.

As I mentioned, Dick’s Sporting Goods is one of my oldest holdings. I still own stock from the IPO for several clients having bought more stock on the opening day in the secondary market and for new clients thereafter. I like the company’s business model, strategy, management team and balance sheet. A year from now I have a preliminary price target in the range of $50 to $52.50

Disclosure: At the time of this commentary Scott Rothbort, his family and/or clients of LakeView Asset Management, LLC was long DKS stock — although positions can change at any time.

Source: More Growth In Dick's Sporting Goods' Future