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For the to-be-reported quarter, the consensus mark is pegged at 26 cents per share, reflecting a decline of 13.3% year over year. Estimates remained stable over the past 30 days. Meanwhile, the Zacks Consensus Estimate for revenues stands at $1,874 million, down 3.6% from the prior-year quarter. Let’s see how things are shaping up ahead of the upcoming release.
Factors at Play
DICK’S Sporting has been gaining from the solid execution of its merchandising strategy, which is leading to higher merchandise margins and aiding results. As part of its merchandising strategy, the company is focused on optimizing inventory in order to make shelves available for popular and private label brands. Also, DICK’S Sporting is keen on investing in supply chain to improve in-stock levels as well as the speed and reliability of online delivery in the future. These investments will improve customer satisfaction and inventory turnover besides driving merchandise margin rates. Also, lower promotions and favorable product mix have been aiding merchandise margins.
Further, DICK’S Sporting’s solid focus on developing every possible avenue to generate higher sales remains impressive. These apart, the company’s consistent efforts toward building the best omni-channel experience for athletes by strengthening its store network and expanding e-commerce presence are commendable. In the last reported quarter, e-commerce penetration improved to 11% of net sales. On a year-over-year basis, e-commerce sales grew 12% in the same time period.
As part of its long-term plan, the company plans to make significant investments in e-commerce, technology, store payroll, Team Sports HQ and private brands. All these endeavors are likely to augment the top line and boost profitability in the to-be-reported quarter.
Year to date, shares of DICK’S Sporting have surged 21.9%, outperforming the industry’s 16.1% growth.
Despite these positives, persistent softness in the hunting and electronic categories has been negatively impacting the company’s comparable store sales (comps) and top-line growth. Changes to firearm policies along with a challenged industry have been hurting sales for the hunting business. Evidently, the hunting and electronics businesses contributed roughly 50% of the comps decline in the fiscal second quarter.
The hunting and firearm business will continue to be impacted by the recent changes to the firearm policies, while the electronics business is expected to be hurt by its reduced exposure. These categories remain deterrents to comps growth in the impending quarter as well.
A Look at the Zacks Model
Our proven model conclusively shows that DICK’S Sporting is likely to beat earnings estimates in third-quarter fiscal 2018. This is because a stock needs to have — a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) — for this to happen. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
DICK’S Sporting has an Earnings ESP of +7.35% and a Zacks Rank #2, which make us confident of an earnings beat.
Other Stocks Poised to Beat Earnings Estimates
Here are some companies that you may want to consider as our model shows that these too have the right combination of elements to post an earnings beat:
Burlington Stores, Inc. (BURL - Free Report) has an Earnings ESP of +2.95% and a Zacks Rank #2.
Costco Wholesale Corporation (COST - Free Report) has an Earnings ESP of +3.09% and a Zacks Rank #3.
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Ignited by new referendums and legislation, this industry is expected to blast from an already robust $6.7 billion to $20.2 billion in 2021. Early investors stand to make a killing, but you have to be ready to act and know just where to look.
Image: Bigstock
Check DICK'S Sporting (DKS) Probability to Beat Earnings in Q3
DICK’S Sporting Goods Inc. (DKS - Free Report) is slated to report third-quarter fiscal 2018 results on Nov 28, before the opening bell.
Notably, the company’s earnings have surpassed the Zacks Consensus Estimate in each of the trailing four quarters, with an average beat of 18.2%.
DICK'S Sporting Goods, Inc. Price, Consensus and EPS Surprise
DICK'S Sporting Goods, Inc. Price, Consensus and EPS Surprise | DICK'S Sporting Goods, Inc. Quote
For the to-be-reported quarter, the consensus mark is pegged at 26 cents per share, reflecting a decline of 13.3% year over year. Estimates remained stable over the past 30 days. Meanwhile, the Zacks Consensus Estimate for revenues stands at $1,874 million, down 3.6% from the prior-year quarter. Let’s see how things are shaping up ahead of the upcoming release.
Factors at Play
DICK’S Sporting has been gaining from the solid execution of its merchandising strategy, which is leading to higher merchandise margins and aiding results. As part of its merchandising strategy, the company is focused on optimizing inventory in order to make shelves available for popular and private label brands. Also, DICK’S Sporting is keen on investing in supply chain to improve in-stock levels as well as the speed and reliability of online delivery in the future. These investments will improve customer satisfaction and inventory turnover besides driving merchandise margin rates. Also, lower promotions and favorable product mix have been aiding merchandise margins.
Further, DICK’S Sporting’s solid focus on developing every possible avenue to generate higher sales remains impressive. These apart, the company’s consistent efforts toward building the best omni-channel experience for athletes by strengthening its store network and expanding e-commerce presence are commendable. In the last reported quarter, e-commerce penetration improved to 11% of net sales. On a year-over-year basis, e-commerce sales grew 12% in the same time period.
As part of its long-term plan, the company plans to make significant investments in e-commerce, technology, store payroll, Team Sports HQ and private brands. All these endeavors are likely to augment the top line and boost profitability in the to-be-reported quarter.
Year to date, shares of DICK’S Sporting have surged 21.9%, outperforming the industry’s 16.1% growth.
Despite these positives, persistent softness in the hunting and electronic categories has been negatively impacting the company’s comparable store sales (comps) and top-line growth. Changes to firearm policies along with a challenged industry have been hurting sales for the hunting business. Evidently, the hunting and electronics businesses contributed roughly 50% of the comps decline in the fiscal second quarter.
The hunting and firearm business will continue to be impacted by the recent changes to the firearm policies, while the electronics business is expected to be hurt by its reduced exposure. These categories remain deterrents to comps growth in the impending quarter as well.
A Look at the Zacks Model
Our proven model conclusively shows that DICK’S Sporting is likely to beat earnings estimates in third-quarter fiscal 2018. This is because a stock needs to have — a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) — for this to happen. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
DICK’S Sporting has an Earnings ESP of +7.35% and a Zacks Rank #2, which make us confident of an earnings beat.
Other Stocks Poised to Beat Earnings Estimates
Here are some companies that you may want to consider as our model shows that these too have the right combination of elements to post an earnings beat:
lululemon athletica inc. (LULU - Free Report) has an Earnings ESP of +4.89% and a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.
Burlington Stores, Inc. (BURL - Free Report) has an Earnings ESP of +2.95% and a Zacks Rank #2.
Costco Wholesale Corporation (COST - Free Report) has an Earnings ESP of +3.09% and a Zacks Rank #3.
Looking for Stocks with Skyrocketing Upside?
Zacks has just released a Special Report on the booming investment opportunities of legal marijuana.
Ignited by new referendums and legislation, this industry is expected to blast from an already robust $6.7 billion to $20.2 billion in 2021. Early investors stand to make a killing, but you have to be ready to act and know just where to look.
See the pot trades we're targeting>>