Dick's Sporting Goods Increases Sales but Misses Revenue Estimate

Seth Jayson, The Motley Fool
Updated

Dick's Sporting Goods (NYS: DKS) reported earnings on May 21. Here are the numbers you need to know.

The 10-second takeaway
 For the quarter ended May 4 (Q1), Dick's Sporting Goods missed estimates on revenues and met expectations on earnings per share.

Compared to the prior-year quarter, revenue expanded. Non-GAAP earnings per share grew. GAAP earnings per share grew significantly.


Gross margins expanded, operating margins dropped, net margins expanded.

Revenue details
 Dick's Sporting Goods chalked up revenue of $1.33 billion. The 24 analysts polled by S&P Capital IQ foresaw a top line of $1.37 billion on the same basis. GAAP reported sales were the same as the prior-year quarter's.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
 EPS came in at $0.48. The 28 earnings estimates compiled by S&P Capital IQ predicted $0.48 per share. Non-GAAP EPS of $0.48 for Q1 were 6.7% higher than the prior-year quarter's $0.45 per share. GAAP EPS of $0.52 for Q1 were 16% higher than the prior-year quarter's $0.45 per share.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
 For the quarter, gross margin was 30.9%, 10 basis points better than the prior-year quarter. Operating margin was 7.3%, 20 basis points worse than the prior-year quarter. Net margin was 4.9%, 40 basis points better than the prior-year quarter. (Margins calculated in GAAP terms.)

Looking ahead
 Next quarter's average estimate for revenue is $1.59 billion. On the bottom line, the average EPS estimate is $0.76.

Next year's average estimate for revenue is $6.28 billion. The average EPS estimate is $2.86.

Investor sentiment
 The stock has a three-star rating (out of five) at Motley Fool CAPS, with 415 members out of 476 rating the stock outperform, and 61 members rating it underperform. Among 178 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 162 give Dick's Sporting Goods a green thumbs-up, and 16 give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Dick's Sporting Goods is outperform, with an average price target of $56.26.

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The article Dick's Sporting Goods Increases Sales but Misses Revenue Estimate originally appeared on Fool.com.

Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor ofMotley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. The Motley Fool has no position in any of the stocks mentioned. 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.

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