Dick's Sporting Gains on Strong Beat, Q4 Optimism

Shares of retailer Dick's Sporting Goods were higher by 6.93% in mid-day trading (as of noon) on a strong earnings beat. The company also raised guidance for next year to above consensus analyst estimates. Dick's reported a Q3 net income increase of 57% to $12.2 million, good for EPS of $0.10, versus net income of $7.8 million (EPS of $0.07) a year ago. Sales climbed 18% to $838.8 million. Consensus analyst estimates were for EPS of $0.06 on sales of $849 million. Same store sales were down 2.5% Y/Y. The company projected Q4 earnings of $0.59 and upped its FY2008 guidance from EPS of $1.24-$1.25 to $1.29, on same store sales growth of 2%. Analysts were expecting, on average, Q4 EPS of $0.59 and FY2008 EPS of $1.28. In the earnings press release, Chairman and CEO Edward W. Stack applauded his company's "improved margins" and "greater efficiencies" while sounding a positive note heading into Q4: "As we head into our seasonally largest quarter, our inventory is on plan and our stores are well positioned to deliver solid results," (full earnings call transcript later today).

Sources: Press release, Thomson Financial/ AFX News, Reuters, AP, MarketWatch
Commentary: Is Dick's Susceptible To The Housing Crisis After All? • Shorting Dick's Sporting Goods on Under Armour Weakness • Conclusions From Dick's Recent Quarter: Plenty Of Room Left For Growth
Stocks to watch: DKS. Competitors: FL, DKS, DKS, BGFV, HIBB
Earnings call transcript: Dick's Sporting Goods Q2 2007

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