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Can Dick's Sporting Goods Beat These Numbers?

By Seth Jayson – Updated Apr 10, 2017 at 1:16PM

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Checking expectations

Dick's Sporting Goods (NYSE: DKS) is expected to report Q1 earnings on May 21. Here's what Wall Street wants to see:

The 10-second takeaway
Comparing the upcoming quarter to the prior-year quarter, average analyst estimates predict Dick's Sporting Goods's revenues will grow 6.6% and EPS will expand 6.7%.

The average estimate for revenue is $1.37 billion. On the bottom line, the average EPS estimate is $0.48.

Revenue details
Last quarter, Dick's Sporting Goods booked revenue of $1.81 billion. GAAP reported sales were 12% higher than the prior-year quarter's $1.61 billion.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
Last quarter, EPS came in at $1.03. GAAP EPS of $1.03 for Q4 were 17% higher than the prior-year quarter's $0.88 per share.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Recent performance
For the preceding quarter, gross margin was 32.6%, 80 basis points better than the prior-year quarter. Operating margin was 11.7%, 30 basis points better than the prior-year quarter. Net margin was 7.2%, 30 basis points better than the prior-year quarter.

Looking ahead

The full year's average estimate for revenue is $6.28 billion. The average EPS estimate is $2.86.

Investor sentiment
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 413 members out of 474 rating the stock outperform, and 61 members rating it underperform. Among 173 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 158 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 $57.78.

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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 has no position in any of the stocks mentioned. 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.

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