Dick's Sporting Goods
The 10-second takeaway
For the quarter ended Oct. 27 (Q3), Dick's Sporting Goods beat slightly on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue expanded and GAAP earnings per share grew significantly.
Margins expanded across the board.
Dick's Sporting Goods reported revenue of $1.31 billion. The 24 analysts polled by S&P Capital IQ expected sales of $1.29 billion on the same basis. GAAP reported sales were 11% higher than the prior-year quarter's $1.18 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 $0.40. The 26 earnings estimates compiled by S&P Capital IQ averaged $0.37 per share. GAAP EPS of $0.40 for Q3 were 21% higher than the prior-year quarter's $0.33 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 31.0%, 130 basis points better than the prior-year quarter. Operating margin was 6.3%, 20 basis points better than the prior-year quarter. Net margin was 3.8%, 30 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $1.84 billion. On the bottom line, the average EPS estimate is $1.07.
Next year's average estimate for revenue is $5.98 billion. The average EPS estimate is $2.56.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 400 members out of 459 rating the stock outperform, and 59 members rating it underperform. Among 154 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 140 give Dick's Sporting Goods a green thumbs-up, and 14 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 $56.95.
If you're invested in retailers like Dick's Sporting Goods, you should check out the concept that is The Motley Fool's top stock for 2012. Its founder wrote the book on big box retailing, and it's growing in increasingly important international markets. Click here for instant access to this free report.
- Add Dick's Sporting Goods to My Watchlist.
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.