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Why DICK'S Sporting (DKS) Tumbled After In-Line Q1 Earnings

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DICK'S Sporting Goods, Inc. (DKS - Free Report) , the sporting goods retailer, came out with first-quarter fiscal 2017 results, wherein adjusted earnings of 54 cents per share jumped 8% year over year, coming in line with the Zacks Consensus Estimate. Notably, earnings came in the higher end of the company’s guidance range of 50 – 55 cents per share.

Earnings Estimate Revision: The Zacks Consensus Estimate for fiscal 2017 has shown a slight uptrend over the last 7 days. Moreover, in the trailing four quarters (excluding the quarter under review), the company has outperformed the Zacks Consensus Estimate by an average of 9.8%.

Revenues: Dick's Sporting generated total sales of nearly $1,825.3 million that jumped 9.9% year over year, while it fell short of the Zacks Consensus Estimate of nearly $1,834 million. Consolidated comps grew about 2.4%, lagging the company’s forecast of 3% – 4% increase.

Key Events: On May 11, 2017, management declared a quarterly cash dividend of 17 cents per share on the Company's Common Stock and Class B Common Stock. This is payable on Jun 30, 2017 to shareholders of record as on Jun 9.

Further, Dick's Sporting repurchased roughly 0.5 million shares worth $23 million during the quarter, following which it had shares worth roughly $1.0 billion remaining under its standing authorization that extends through 2021.

Outlook: Following the results, the company reiterated its fiscal 2017 earnings outlook. For fiscal 2017, which will have an additional week, the company expects adjusted earnings to range from $3.65 - $3.75 per share. Consolidated comps growth is now anticipated in a range of 1% - 3%, compared with 2% - 3% projected earlier.

For the second-quarter of fiscal 2017, the company envisions earnings per share to lie in the band of $1.02 – $1.07, while it anticipates comps growth to range from 2% to 3%.

Zacks Rank: Currently, Dick's Sporting carries a Zacks Rank #3 (Hold) which is subject to change following the earnings announcement.

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Stock Movement: Dick's Sporting shares fell over 10% during pre-market trading hours following the first-quarter results. This could be accountable to the company’s lower-than-expected comps and sales performance.

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