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Dick's Sporting Goods Q2 Preview: Can Shares Stay Hot?
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The Zacks Retail and Wholesale Sector has been hot over the last month, increasing by nearly 13% in value and marginally outperforming the S&P 500. Still, the sector is deep in the red YTD, down almost 15%.
A titan in the industry, Dick’s Sporting Goods (DKS - Free Report) , is on deck to unveil Q2 earnings on Tuesday, August 23rd, before market open.
Dick’s Sporting Goods operates as a major omnichannel sporting goods retailer, offering athletic shoes, apparel, accessories, and a broad selection of outdoor and athletic equipment for team sports, fitness, camping, fishing, tennis, golf, water sports, etc.
The company currently carries a Zacks Rank #4 (Sell) with an overall VGM Score of a B. How does the sports retailer stack up heading into the print? Let’s take a closer look.
Share Performance & Valuation
Dick’s Sporting Goods shares have provided a much higher level of defense than the S&P 500 year-to-date, declining just 2.1%.
Image Source: Zacks Investment Research
Over the last month, shares have remained remarkably strong, increasing by a sizable 21% and easily outperforming the S&P 500.
Image Source: Zacks Investment Research
In addition, DKS shares trade at enticing valuation levels – the company’s 10.4X forward earnings multiple is nicely below its five-year median of 11.1X and represents a steep 61% discount relative to its Zacks Sector.
DKS sports a Style Score of an A for Value.
Image Source: Zacks Investment Research
Quarterly Estimates
Analysts have primarily been bearish for the quarter to be reported, with two of three estimate revisions being downwards. Still, the Zacks Consensus EPS Estimate of $3.52 reflects a 31% drop-off in quarterly earnings Y/Y.
Image Source: Zacks Investment Research
The company’s top-line appears to be softening as well – DKS is forecasted to have generated $3.1 billion in revenue throughout the quarter, reflecting a 6.2% decrease compared to year-ago quarterly sales of $3.3 billion.
Quarterly Performance & Market Reactions
DKS has been on an impressive earnings streak, exceeding the Zacks Consensus EPS Estimate in eight consecutive quarters. Just in its latest print, the company recorded a sizable 17.3% bottom-line beat.
Top-line results have been even more remarkable – Dick’s Sporting Goods has chained together 14 consecutive revenue beats. Below is a chart illustrating the company’s revenue on a quarterly basis.
Image Source: Zacks Investment Research
In addition, the market has been impressed with the company’s last two quarterly releases, with shares moving upwards following each one by at least 9.4%.
Putting Everything Together
DKS shares have displayed remarkable relative strength in 2022, outperforming the S&P 500 not just year-to-date but over the past month as well.
Furthermore, shares trade at enticing valuation levels, well below their five-year median and Zacks Sector average.
Analysts have been bearish for the quarter to be reported, and estimates reflect a declining top and bottom-line.
Still, the company has consistently exceeded quarterly estimates, and the market has reacted well as of late following quarterly prints.
Heading into the release, Dick’s Sporting Goods (DKS - Free Report) carries a Zacks Rank #4 (Sell) with an Earnings ESP Score of -1.6%.
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Dick's Sporting Goods Q2 Preview: Can Shares Stay Hot?
The Zacks Retail and Wholesale Sector has been hot over the last month, increasing by nearly 13% in value and marginally outperforming the S&P 500. Still, the sector is deep in the red YTD, down almost 15%.
A titan in the industry, Dick’s Sporting Goods (DKS - Free Report) , is on deck to unveil Q2 earnings on Tuesday, August 23rd, before market open.
Dick’s Sporting Goods operates as a major omnichannel sporting goods retailer, offering athletic shoes, apparel, accessories, and a broad selection of outdoor and athletic equipment for team sports, fitness, camping, fishing, tennis, golf, water sports, etc.
The company currently carries a Zacks Rank #4 (Sell) with an overall VGM Score of a B. How does the sports retailer stack up heading into the print? Let’s take a closer look.
Share Performance & Valuation
Dick’s Sporting Goods shares have provided a much higher level of defense than the S&P 500 year-to-date, declining just 2.1%.
Image Source: Zacks Investment Research
Over the last month, shares have remained remarkably strong, increasing by a sizable 21% and easily outperforming the S&P 500.
Image Source: Zacks Investment Research
In addition, DKS shares trade at enticing valuation levels – the company’s 10.4X forward earnings multiple is nicely below its five-year median of 11.1X and represents a steep 61% discount relative to its Zacks Sector.
DKS sports a Style Score of an A for Value.
Image Source: Zacks Investment Research
Quarterly Estimates
Analysts have primarily been bearish for the quarter to be reported, with two of three estimate revisions being downwards. Still, the Zacks Consensus EPS Estimate of $3.52 reflects a 31% drop-off in quarterly earnings Y/Y.
Image Source: Zacks Investment Research
The company’s top-line appears to be softening as well – DKS is forecasted to have generated $3.1 billion in revenue throughout the quarter, reflecting a 6.2% decrease compared to year-ago quarterly sales of $3.3 billion.
Quarterly Performance & Market Reactions
DKS has been on an impressive earnings streak, exceeding the Zacks Consensus EPS Estimate in eight consecutive quarters. Just in its latest print, the company recorded a sizable 17.3% bottom-line beat.
Top-line results have been even more remarkable – Dick’s Sporting Goods has chained together 14 consecutive revenue beats. Below is a chart illustrating the company’s revenue on a quarterly basis.
Image Source: Zacks Investment Research
In addition, the market has been impressed with the company’s last two quarterly releases, with shares moving upwards following each one by at least 9.4%.
Putting Everything Together
DKS shares have displayed remarkable relative strength in 2022, outperforming the S&P 500 not just year-to-date but over the past month as well.
Furthermore, shares trade at enticing valuation levels, well below their five-year median and Zacks Sector average.
Analysts have been bearish for the quarter to be reported, and estimates reflect a declining top and bottom-line.
Still, the company has consistently exceeded quarterly estimates, and the market has reacted well as of late following quarterly prints.
Heading into the release, Dick’s Sporting Goods (DKS - Free Report) carries a Zacks Rank #4 (Sell) with an Earnings ESP Score of -1.6%.