U.S. retailer Dick’s Sporting Goods (DKS) has raised its full-year guidance after reporting third-quarter financial results that beat Wall Street estimates.
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The company, which sells sports equipment, announced earnings per share (EPS) of $2.75, which topped the $2.68 that was expected among analysts. Revenue in the quarter totaled $3.06 billion, which was ahead of the $3.03 billion expected on Wall Street. Sales rose 4% from a year ago.
Management attributed the results to strong back-to-school shopping and better-than-expected comparable sales. The company also said that it expects a strong holiday shopping season after issuing cautious guidance earlier this year.
Raised Guidance
Looking ahead, Dick’s raised its full-year outlook, saying it now expects same-store sales to grow between 3.6% and 4.2%. That’s up from a previous range of 2.5% to 3.5%, and ahead of the 3.4% growth forecast among analysts who track the company’s progress.
For all of this year, Dick’s Sporting Goods is now expecting sales of $13.2 billion to $13.3 billion, which is inline with estimates of $13.26 billion. Previously, the company had forecast sales in a range of $13.1 billion to $13.2 billion. Full-year earnings are forecast to be $13.65 to $13.95, up from previous guidance that called for $13.55 to $13.90.
The stock of Dick’s Sporting Goods is up nearly 50% so far this year.
Is DKS Stock a Buy?
The stock of Dick’s Sporting Goods has a consensus Moderate Buy rating among 17 Wall Street analysts. That ratings is based on 10 Buy and seven Hold recommendations issued in the last three months. There are no Sell ratings on the stock. The average DKS price target of $244.13 implies 13.14% upside from current levels.
