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Bull Of The Day: Hibbett Sports (HIBB)

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Hibbett Sports (HIBB - Free Report) is a Zacks Rank #1 (Strong Buy) with A’s for Growth and Value.  There is a B for “Momentum” but I rarely use that metric… still just a hair off of having straight A’s.  This is a sporting goods retailer and it has really survived the pandemic and maybe even pulled some sales forward.  Let’s take a deeper look at this stock in this Bull of the Day article.

Earnings History

This is really a case of feast or famine.  The most recent quarter was a blowout with the company reporting EPS of $2.95 when $1.75 was expected.  That $1.20 difference is good for a 69% positive earnings surprise.

Prior to that there were two misses in a row.  A miss of 12 and 11 cents translated into negative earnings surprises of 28% and 17%.

4 quarters ago we had the report that really skewed the average.  The beat of 20 cents translated into a positive earnings surprise of 153%.

So 2 beats and 2 misses with the beats coming in much stronger than the misses.

Estimate Revisions

Following the most recent big beat, estimates have really moved higher.  I see this quarter running from 33 cents to 41 cents.

Next quarter has bumped from 47 cents to 57 cents.

The full year numbers are up as well, with this year running to $4.34 from $2.92 and next year lifting from $2.53 to $3.13.

The idea of negative earnings growth is here, and I think a lot of this could be a “pull forward” of sales expectations.  The pandemic has made a lot of people use the home as their home gym, so that has to part of the pull forward for this year.


So these numbers are amazing.  A 8.7x forward earnings multiple is super low.  1.8x book is going to keep the value players happy… but look at the topline growth.  I see 75% topline growth for a sporting goods retailer in the most recent quarter. That is just amazing.  Add to that margins jumping from 1.6% to 5.4% and you have an EPS surge.



Hibbett Sports, Inc. Price, Consensus and EPS Surprise

Hibbett Sports, Inc. Price, Consensus and EPS Surprise

Hibbett Sports, Inc. price-consensus-eps-surprise-chart | Hibbett Sports, Inc. Quote

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