After the retailer of sporting goods posted strong quarterly results and increased its financial predictions for the whole year, Dick’s Sporting Goods shares rose on Tuesday morning.
DKS DICK’S SPORTING GOODS INC. Ticker Security Last Change Change% 111.71 -2.58 -2.26% Dick’s announced adjusted second-quarter earnings of $3.68 per share, exceeding the FactSet-tracked analysts’ consensus estimate of $3.59. Analysts had predicted a 6.9% loss in same-store sales, which assess revenue at locations open for at least a year. Instead, they saw a decline of 5.1%.
Analysts had anticipated $3.1 billion in net sales for the second quarter.
However, the market often values stocks based more on what is anticipated than on what has actually been recorded in the books. Dick’s stated that for the entire fiscal year, which ends in January 2023, it anticipates adjusted earnings to be in the $10 to $12 per share area. The management’s previous prediction of a result between $9.15 and $11.70 is better than this. Additionally, the midpoint of the new range is a little bit higher than the $10.92 per share analyst consensus estimate. In contrast to management’s previous forecast of a loss of up to 8%, same-store sales are now predicted to be down by between -6 and -2 percent from 2021. Analysts anticipated a 4.4% drop.
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In early Tuesday trading, the shares increased 2.2% to $112.81. On Monday, it dropped 0.6% while the Sandamp;P 500 sank 2.1%.