Big Five Sporting Goods (BGFV - Free Report) is a sporting goods retailer in the western US, operating 433 stores in 11 states. They product lines include athletic shoes, apparel, accessories and a broad selection of outdoor and athletic equipment.
Disappointing Results
The retailer reported much worse-than-expected results for Q2. Adjusted earnings of 13 cents per share were significantly short of the Zacks Consensus Estimate of 19 cents. Sales also missed our estimates.
“After a solid start to the period, sales for our second quarter came in below expectations,” said the CEO. “During the third quarter, we expect sales comparisons to be pressured as we continue to cycle the lift in sales that we experienced last year as a result of the competitor store closures, while also operating in a challenging retail environment.”
Falling Estimates
Analysts have lowered their estimates significantly after disappointing results and guidance. Zacks Consensus Estimates for the current and next fiscal year have plunged to $1.03 per share and $1.05 per share from $1.23 and $1.34 respectively, before the results.
The Bottom Line
Most retailers are going through a lot of pain thanks to the rising trend for online shopping, particularly on Amazon. While this retailer was doing quite well earlier this year as they seem to have also benefited from liquidation of Sports Authority and Sport Chalet, their latest quarter reveals rising challenges.
The stock is now down more than 45% year-to-date but a rebound doesn’t appear likely anytime soon given Zacks stock rank of #5 (Strong Sell) and industry and sector ranks in the bottom 11% and 6% respectively.
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Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
Big Five Sporting Goods (BGFV - Free Report) is a sporting goods retailer in the western US, operating 433 stores in 11 states. They product lines include athletic shoes, apparel, accessories and a broad selection of outdoor and athletic equipment.
Disappointing Results
The retailer reported much worse-than-expected results for Q2. Adjusted earnings of 13 cents per share were significantly short of the Zacks Consensus Estimate of 19 cents. Sales also missed our estimates.
“After a solid start to the period, sales for our second quarter came in below expectations,” said the CEO. “During the third quarter, we expect sales comparisons to be pressured as we continue to cycle the lift in sales that we experienced last year as a result of the competitor store closures, while also operating in a challenging retail environment.”
Falling Estimates
Analysts have lowered their estimates significantly after disappointing results and guidance. Zacks Consensus Estimates for the current and next fiscal year have plunged to $1.03 per share and $1.05 per share from $1.23 and $1.34 respectively, before the results.
The Bottom Line
Most retailers are going through a lot of pain thanks to the rising trend for online shopping, particularly on Amazon. While this retailer was doing quite well earlier this year as they seem to have also benefited from liquidation of Sports Authority and Sport Chalet, their latest quarter reveals rising challenges.
The stock is now down more than 45% year-to-date but a rebound doesn’t appear likely anytime soon given Zacks stock rank of #5 (Strong Sell) and industry and sector ranks in the bottom 11% and 6% respectively.
Today's Stocks from Zacks' Hottest Strategies
It's hard to believe, even for us at Zacks. But while the market gained +18.8% from 2016 - Q1 2017, our top stock-picking screens have returned +157.0%, +128.0%, +97.8%, +94.7%, and +90.2% respectively. And this outperformance has not just been a recent phenomenon. Over the years it has been remarkably consistent. From 2000 - Q1 2017, the composite yearly average gain for these strategies has beaten the market more than 11X over. Maybe even more remarkable is the fact that we're willing to share their latest stocks with you without cost or obligation. See Them Free>>
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
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