Big 5 Sporting Goods Earnings Preview

Motley Fool Staff
Updated

Big 5 Sporting Goods (NAS: BGFV) hasn't been able to establish an earnings trend, bouncing between beating and falling short of estimates during the past fiscal year. The company will unveil its latest earnings on Tuesday, August 2. Big 5 Sporting Goods operates as a sporting goods retailer in the western United States. Its product mix includes athletic shoes, apparel, and accessories, as well as a broad selection of outdoor and athletic equipment.

What analysts say:

  • Buy, sell, or hold?: Analysts think investors should stand pat on Big 5 Sporting Goods with nine of 11 analysts rating it hold. Analysts don't like Big 5 Sporting Goods as much as competitor Golfsmith International Holdings overall. One out of one analysts rate Golfsmith International Holdings a buy compared to two of 11 for Big 5 Sporting Goods. While analysts still rate the stock a hold, they are a little more optimistic about it compared to three months ago.

  • Revenue Forecasts: On average, analysts predict $219.9 million in revenue this quarter. That would represent a rise of 0.1% from the year-ago quarter.

  • Wall Street Earnings Expectations: The average analyst estimate is earnings of $0.10 per share. Estimates range from $0.09 to $0.14.

What our community says:
The majority of CAPS All Stars see BGFV as a good bet, with 66.7% awarding it an "outperform" rating. The majority of the Fools are in agreement with the All Stars, as 67.3% give it an "outperform" rating. Fools are keen on Big 5 Sporting Goods, though the message boards have been quiet lately with only 46 posts in the past 30 days. Big 5 Sporting Goods' bearish CAPS rating of two out of five stars falls short of the Fool community sentiment.

Management:
Big 5 Sporting Goods' income has fallen year over year by an average of 24%.

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

Q1

Q4

Q3

Q2

Gross Margin

32.6%

33.4%

33.4%

33.2%

Operating Margin

2.2%

2.9%

4.8%

3.6%

Net Margin

1.2%

1.7%

2.9%

2.2%

For all our Big 5 Sporting Goods-specific analysis, including earnings and beyond, add Big 5 Sporting Goods to My Watchlist.

Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

At the time thisarticle was published

Copyright © 1995 - 2011 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

Advertisement