Shares of sporting goods retailer Hibbett (HIBB) soared on Tuesday after the company delivered solid financial results for its fiscal third quarter of 2024 and raised its full-year financial guidance in certain metrics. As of 10:45 a.m. ET, Hibbett stock was up 12%.

Better-than-expected financial results

Hibbett's fiscal quarter ended in October. The company's same-store sales fell 2.7% year over year, which was far better than its 7.3% decline in the previous quarter. It's worth noting that rival Dick's Sporting Goods also reported financial results today and it registered 1.7% growth in its same-store sales, which was also stronger than expected. In other words, shoppers seem to be spending more than expected, generally speaking, to the benefit of both companies.

Through operational discipline and surprisingly strong e-commerce sales, Hibbett is also demonstrating good profitability. Moreover, by repurchasing shares in Q3, the company was able to grow its earnings per share (EPS) to $2.05, up from $1.94 in the prior-year period.

Better sales and EPS growth has the market excited about Hibbett stock today.

Hibbett raises its guidance

Hibbett didn't raise its financial guidance across the board but some metrics have an improved outlook. The big change is in its EPS guidance. Management previously expected to earn between $7 and $7.75 per share. But now it expects to earn between $8 and $8.30 per share. That's a lot for a stock that trades at around $60 per share, as of this writing.

Hibbett's improved outlook for its EPS is partly due to its cheap stock price. Management has been able to repurchase more shares than previously expected, boosting earnings for shareholders.

As long as consumer demand for sporting goods continues to hold up, Hibbett's profits should continue. From there, look for the management team to keep giving back to shareholders as it did in Q3.