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Dick's (DKS) Stock Jumps 16.9%: Will It Continue to Soar?
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Dick's Sporting Goods (DKS - Free Report) shares ended the last trading session 16.9% higher at $98.40. The jump came on an impressive volume with a higher-than-average number of shares changing hands in the session. This compares to the stock's 0.5% gain over the past four weeks.
Dick’s stock moved higher as its top and bottom line for first-quarter fiscal 2021 significantly beat the Zacks Consensus Estimate and management lifted fiscal 2021 guidance. The sales and earnings figures not only improved year over year but also exceeded the pre-pandemic numbers recorded in first-quarter fiscal 2019. Favorable customer demand, particularly in golf, outdoor activities, home fitness and active lifestyle categories aided the results. Also, a solid product portfolio, advanced technologies and omni-channel capabilities contributed to quarterly growth. Momentum at its physical stores and digital portals boosted the top line. The strong results led management to raise its view for fiscal 2021. It now expects sales of $10,515-$10,806 million, with same-store sales growth of 8-11%. Adjusted earnings are now envisioned to be $8-$8.70 per share.
The company reported adjusted earnings of $3.79 per share that beat the Zacks Consensus Estimate of $1.04 and marked a substantial growth from loss per share of $1.71 reported in the year-ago quarter. Net sales of $2,918.7 million surpassed the Zacks Consensus Estimate of $2,215 million and skyrocketed 119% year over year. Notably, consolidated same-store sales surged 115%, while e-commerce sales improved 14% year over year.
Price and Consensus
This sporting goods retailer is expected to post quarterly earnings of $1.68 per share in its upcoming report, which represents a year-over-year change of -47.66%. Revenues are expected to be $2.51 billion, down 7.66% from the year-ago quarter.
Earnings and revenue growth expectations certainly give a good sense of the potential strength in a stock, but empirical research shows that trends in earnings estimate revisions are strongly correlated with near-term stock price movements.
For Dick's, the consensus EPS estimate for the quarter has been revised 0.6% higher over the last 30 days to the current level. And a positive trend in earnings estimate revision usually translates into price appreciation. So, make sure to keep an eye on DKS going forward to see if this recent jump can turn into more strength down the road.
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Dick's (DKS) Stock Jumps 16.9%: Will It Continue to Soar?
Dick's Sporting Goods (DKS - Free Report) shares ended the last trading session 16.9% higher at $98.40. The jump came on an impressive volume with a higher-than-average number of shares changing hands in the session. This compares to the stock's 0.5% gain over the past four weeks.
Dick’s stock moved higher as its top and bottom line for first-quarter fiscal 2021 significantly beat the Zacks Consensus Estimate and management lifted fiscal 2021 guidance. The sales and earnings figures not only improved year over year but also exceeded the pre-pandemic numbers recorded in first-quarter fiscal 2019. Favorable customer demand, particularly in golf, outdoor activities, home fitness and active lifestyle categories aided the results. Also, a solid product portfolio, advanced technologies and omni-channel capabilities contributed to quarterly growth. Momentum at its physical stores and digital portals boosted the top line. The strong results led management to raise its view for fiscal 2021. It now expects sales of $10,515-$10,806 million, with same-store sales growth of 8-11%. Adjusted earnings are now envisioned to be $8-$8.70 per share.
The company reported adjusted earnings of $3.79 per share that beat the Zacks Consensus Estimate of $1.04 and marked a substantial growth from loss per share of $1.71 reported in the year-ago quarter. Net sales of $2,918.7 million surpassed the Zacks Consensus Estimate of $2,215 million and skyrocketed 119% year over year. Notably, consolidated same-store sales surged 115%, while e-commerce sales improved 14% year over year.
Price and Consensus
This sporting goods retailer is expected to post quarterly earnings of $1.68 per share in its upcoming report, which represents a year-over-year change of -47.66%. Revenues are expected to be $2.51 billion, down 7.66% from the year-ago quarter.
Earnings and revenue growth expectations certainly give a good sense of the potential strength in a stock, but empirical research shows that trends in earnings estimate revisions are strongly correlated with near-term stock price movements.
For Dick's, the consensus EPS estimate for the quarter has been revised 0.6% higher over the last 30 days to the current level. And a positive trend in earnings estimate revision usually translates into price appreciation. So, make sure to keep an eye on DKS going forward to see if this recent jump can turn into more strength down the road.
The stock currently carries a Zacks Rank 2 (Buy). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>