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DICK'S (DKS) to Report Q3 Earnings: What's in the Offing?

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DICK’S Sporting Goods Inc. (DKS - Free Report) is slated to report third-quarter fiscal 2020 results on Nov 24. In the last reported quarter, the company’s earnings outperformed the Zacks Consensus Estimate by 158.9%. Moreover, it delivered a positive earnings surprise of 15.5%, on average, in the trailing four quarters.

The Zacks Consensus Estimate for third-quarter earnings is pegged at 87 cents per share, indicating an increase of 67.3% from the prior-year quarter. Moreover, the estimate has moved 6 cents north in the past 30 days. The consensus mark for revenues is pegged at $2.23 billion, which indicates growth of 13.5% from the figure reported in the year-ago quarter.

Factors to Note

DICK’S Sporting has been gaining from solid comps and robust e-commerce performance. Solid performance in all core categories, including hardlines, apparel and footwear, has been aiding comps growth. In its last earnings call, management noted that the comps momentum sustained in the initial part of the fiscal third quarter, driven by healthy consumer demand.

Also, the company has been witnessing strong online sales owing to the shift in consumer preference amid the coronavirus pandemic. Strong online demand and improved omnichannel capabilities, including curbside pickup service to fulfill online orders and serve customers, are expected to have been key drivers.

However, cost headwinds related to coronavirus are likely to have persisted in the fiscal third quarter. In its last earnings call, management expected to incur $50 million of COVID-19-related costs in the third quarter of fiscal 2020.

DICKS Sporting Goods, Inc. Price and EPS Surprise

What the Zacks Model Unveils

Our proven model predicts an earnings beat for DICK’S Sporting this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

DICK’S Sporting carries a Zacks Rank #3 and an Earnings ESP of +16.18%.

Other Stocks With Favorable Combinations

Here are a few other companies you may want to consider, as our model shows that these too have the right combination to post an earnings beat:

Caseys General Stores, Inc. (CASY - Free Report) has an Earnings ESP of +3.32% and a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.

Signet Jewelers Limited (SIG - Free Report) has an Earnings ESP of +13.95% and a Zacks Rank #2.

Best Buy Co., Inc. (BBY - Free Report) has an Earnings ESP of +14.92% and a Zacks Rank #2.

5 Stocks Set to Double

Each was hand-picked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2020. Each comes from a different sector and has unique qualities and catalysts that could fuel exceptional growth.

Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.

Today, See These 5 Potential Home Runs >>

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