After seeing its stock drop despite a plethora of positive news last quarter, Dick's Sporting Goods (NYSE:DKS) made sure it left its investors no choice this time around. The company posted impressive results across the board and even raised its full-year 2004 guidance. But in case that wasn't enough, Dick's took it to the next level, raising its forecast for fiscal year 2005 as well.

For the second quarter ended July 31, Dick's reported net income of $17.9 million, or $0.34 per share. This equates to a 16% increase from the $15.5 million, or $0.31 per share, generated last year. Adjusting for the 2004 pre-tax store relocation expense and the 2003 pre-tax gain on sale of investment, the year-over-year improvement climbs to 25.7%.

Based on its strong performance, Dick's raised its full-year 2004 earnings forecast to a range of $1.35 to $1.37 per share. This represents at least a 3.8% increase from its June 21 range of $1.28 to $1.30 per share. The company also raised its fiscal 2005 earnings projections to between $1.77 and $1.82 per share.

Let's not forget the company's newly acquired Galyan's Trading Co. Dick's expects its Galyan's operations to generate approximately $3.5 million in income this year. Though the price may have been high, Dick's should see significant benefit from its new stores.

Well, it appears Dick's plan worked. Investors were thrilled by the good news and pushed the company's stock higher by 13.6% yesterday. Although that leaves Dick's with a hefty forward P/E of approximately 23.5, the company's growth prospects and earnings potentially justify it.

Want to read more about Dick's Sporting Goods and its success? Check out the following two commentaries by Matt Richey:

Fool contributor Mike Cianciolo doesn't own shares in Dick's Sporting Goods.