Dicks Sporting Goods Inc Takes a Hit Despite Earnings Beat

Dick's shares fall on weak 2018 outlook

Dicks Sporting Goods Inc reported revenue of $1.94 billion in the third quarter of 2017. The short-interest ratio decreased to 5.0 and the percentage of shorted shares is 0.15% as of October 31.

In terms of earnings per share, DKS did overwhelmingly well.

"We expect earnings per diluted share to decline by as much as 20 percent in 2018", said CEO Edward Stack. "As we look to the fourth quarter, we are comfortable with our prior implied sales and earnings outlook, and believe we are well positioned to gain additional market share".

Looking ahead, we see tremendous opportunity in our industry as it continues to evolve. The Company also owns and operates Golf Galaxy, Field & Stream and other specialty concept stores, and Dick's Team Sports HQ, an all-in-one youth sports digital platform offering free league management services, mobile applications for scheduling, communications and live scorekeeping, custom uniforms and FanWear and access to donations and sponsorships. During the same period past year, the business earned $0.82 EPS. The value of the total investment in Dick's Sporting Goods Inc went from $7,155,000 to $4,678,000 a change of $2,477,000 since the last quarter.

Operating income reported by Dicks Sporting Goods Inc in the third quarter of the year was $50.00 million.

The company ended the third quarter of 2017 with approximately $112 million in cash and cash equivalents and approximately $455 million in outstanding borrowings under its revolving credit facility. Dick's Sporting Goods Inc has a 12-month low of $23.88 and a 12-month high of $62.88.

Revenues rose 7.4% from previous year to $1.94 billion, also beating analysts' view for $1.9 billion. The firm realized a rise in short interest of 0.49% as of October 31, 2017 from the last reporting period.

The firm also recently announced a quarterly dividend, which will be paid on Friday, December 29th. Nordea Investment Management AB now owns 5,106 shares of the sporting goods retailer's stock worth $203,000 after purchasing an additional 26 shares during the period.

The company expects full-year earnings in the range of $2.92 to $3.04 per share. The stock has a market cap of $2,936.45, a price-to-earnings ratio of 8.14, a P/E/G ratio of 1.18 and a beta of 0.48. The company expects consolidated same store sales to be in the range of flat to low single-digit decline.

The company expects to open 43 new Dick's Sporting Goods stores and relocate seven Dick's Sporting Goods stores in 2017. Oppenheimer Holdings also issued estimates for Dick's Sporting Goods' FY2018 earnings at $2.82 EPS and FY2019 earnings at $2.95 EPS. Dick's Sporting Goods's dividend payout ratio (DPR) is now 24.29%.

The retailer basically narrowed its guidance for the year. California State Teachers Retirement System now owns 146,918 shares valued at $3,968,000.

Equity analyst Wells Fargo & Company updated its forecast on DKS and giving a rating of "Hold" and a price target of $29.00.

Consolidated same store sales are now expected to decline in the low single-digits in the fourth quarter of 2017, compared to an increase of 5.0 percent in the fourth quarter of 2016. Manning & Napier Advisors LLC boosted its stake in Dick's Sporting Goods by 1,173.1% in the 2nd quarter. In 2016, capital expenditures were $242 million on a net basis and $422 million on a gross basis.

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