Dick's Sporting Goods
The 10-second takeaway
For the quarter ended July 28 (Q2), Dick's Sporting Goods met expectations on revenues and beat slightly on earnings per share.
Compared to the prior-year quarter, revenue expanded and GAAP earnings per share shrank significantly.
Gross margins increased, operating margins improved, net margins dropped.
Dick's Sporting Goods tallied revenue of $1.44 billion. The 22 analysts polled by S&P Capital IQ anticipated net sales of $1.43 billion on the same basis. GAAP reported sales were 10.0% higher than the prior-year quarter's $1.31 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.65. The 25 earnings estimates compiled by S&P Capital IQ predicted $0.64 per share. GAAP EPS of $0.43 for Q2 were 27% lower than the prior-year quarter's $0.59 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 31.2%, 50 basis points better than the prior-year quarter. Operating margin was 9.4%, 90 basis points better than the prior-year quarter. Net margin was 3.7%, 200 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $1.29 billion. On the bottom line, the average EPS estimate is $0.37.
Next year's average estimate for revenue is $5.89 billion. The average EPS estimate is $2.53.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 398 members out of 459 rating the stock outperform, and 61 members rating it underperform. Among 153 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 138 give Dick's Sporting Goods a green thumbs-up, and 15 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Dick's Sporting Goods is outperform, with an average price target of $56.63.
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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. The Motley Fool owns shares of Dick's Sporting Goods. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.