Dick's Sporting Goods Earnings Preview

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Dick's Sporting Goods (NYS: DKS) will try to beat its earnings estimates for the fifth consecutive quarter. The company will unveil its latest earnings on Tuesday, Nov. 15. Dick's Sporting Goods is an authentic, full-line sporting-goods retailer offering a assortment of brand-name sporting goods equipment, apparel, and footwear in a specialty-store environment.

What analysts say:

  • Buy, sell, or hold?: Analysts are bullish on this stock, with 16 analysts rating it a buy and only one rating it a sell. Analysts like Dick's Sporting Goods better than competitor Cabela's overall. Analysts still rate the stock a moderate buy, but they are a bit more wary about it compared to three months ago.
  • Revenue forecasts: On average, analysts predict $1.16 billion in revenue this quarter. That would represent a rise of 7.4% from the year-ago quarter.
  • Wall Street earnings expectations: The average analyst estimate is earnings of $0.26 per share. Estimates range from $0.25 to $0.29.

What our community says:
CAPS All-Stars are solidly behind the stock, with 88.8% giving it an outperform rating. The community at large backs the All-Stars, with 86.6% awarding it a rating of outperform. Fools have embraced Dick's Sporting Goods and haven't been shy with their opinions lately, logging 163 posts in the past 30 days. Dick's Sporting Goods' bearish CAPS rating of two out of five stars falls short of the Fool community sentiment.

Management:
Dick's Sporting Goods' profit has risen year over year by an average of 26.4% over the past five quarters. Revenue has now gone up for three straight quarters.

Now let's look at how efficient management is at running the business. Traditionally, margins represent the efficiency with which companies capture portions of sales dollars. The following table shows gross, operating, and net margins over the past four quarters.

Quarter

Q2

Q1

Q4

Q3

Gross Margin

30.7%

29.7%

31.6%

28.5%

Operating Margin

8.5%

5.8%

9.6%

2.6%

Net Margin

5.7%

3.4%

5.8%

1.6%

One final thing: If you want to keep tabs on Dick's Sporting Goods movements, and for more analysis on the company, make sure you add it to your Watchlist.

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Earnings estimates provided by Zacks.

At the time this article was published

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