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Is DICK'S Sporting (DKS) Likely to Beat Q2 Earnings Estimates?
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DICK’S Sporting Goods Inc. (DKS - Free Report) is slated to report second-quarter fiscal 2020 results on Aug 26. In the last reported quarter, the company missed the Zacks Consensus Estimate by 142%. Moreover, it delivered a negative earnings surprise of 23.2%, on average, in the trailing four quarters.
The Zacks Consensus Estimate for second-quarter earnings is pegged at 81 cents per share, indicating a decline of 35.7% from the prior-year quarter. However, the estimate has increased by 14% in the past seven days. The consensus mark for revenues is pegged at $2.35 billion, which indicates growth of 4% from the figure reported in the year-ago quarter.
Key Factors to Note
In the fiscal second quarter, DICK’S Sporting is expected to have gained from the gradual reopening of stores since mid-April. The company had nearly 80% of its stores operational by the end of May, which are likely to have contributed to the top line in the fiscal second quarter. On its last earnings call, management highlighted that consolidated same-store sales fell 4% in the first four weeks of the second quarter compared with a 29.5% decline in the first quarter. This suggests that the reopening of stores is likely to have continued to aid sales in the second quarter.
Furthermore, the company has been displaying strong online showdown amid the coronavirus pandemic. It is expected to have witnessed continued momentum in online sales, owing to the shift in consumer preference in recent months. Strong online demand along with leveraging its omni-channel capabilities to fulfill online orders and serve customers is expected to have been key drivers in the fiscal second quarter. Further, the introduction of curbside pickup service across the United States has been aiding customer experience.
On the last quarter’s earnings call, management also noted that solid online performance continued in the second quarter even after stores reopened.
However, for the fiscal second quarter, it expects the persistence of the impacts of coronavirus. Also, the company continues to witness cost pressures, which have been weighing on margins and the bottom line. Higher SG&A expenses, a fall in merchandise margins and occupancy cost deleverage are expected to have been threats to margins in the fiscal second quarter.
What the Zacks Model Unveils
Our proven model predicts an earnings beat for DICK’S Sporting this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
DICK’S Sporting carries a Zacks Rank #3 and an Earnings ESP of +49.07%.
Other Stocks With Favorable Combinations
Here are some other companies you may want to consider, as our model shows that these too have the right combination of elements to post an earnings beat.
Best Buy Co., Inc. (BBY - Free Report) presently has an Earnings ESP of +0.95% and a Zacks Rank #2.
Dollar General Corporation (DG - Free Report) currently has an Earnings ESP of +4.89% and a Zacks Rank #2.
Biggest Tech Breakthrough in a Generation
Be among the early investors in the new type of device that experts say could impact society as much as the discovery of electricity. Current technology will soon be outdated and replaced by these new devices. In the process, it’s expected to create 22 million jobs and generate $12.3 trillion in activity.
A select few stocks could skyrocket the most as rollout accelerates for this new tech. Early investors could see gains similar to buying Microsoft in the 1990s. Zacks’ just-released special report reveals 8 stocks to watch. The report is only available for a limited time.
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Is DICK'S Sporting (DKS) Likely to Beat Q2 Earnings Estimates?
DICK’S Sporting Goods Inc. (DKS - Free Report) is slated to report second-quarter fiscal 2020 results on Aug 26. In the last reported quarter, the company missed the Zacks Consensus Estimate by 142%. Moreover, it delivered a negative earnings surprise of 23.2%, on average, in the trailing four quarters.
The Zacks Consensus Estimate for second-quarter earnings is pegged at 81 cents per share, indicating a decline of 35.7% from the prior-year quarter. However, the estimate has increased by 14% in the past seven days. The consensus mark for revenues is pegged at $2.35 billion, which indicates growth of 4% from the figure reported in the year-ago quarter.
Key Factors to Note
In the fiscal second quarter, DICK’S Sporting is expected to have gained from the gradual reopening of stores since mid-April. The company had nearly 80% of its stores operational by the end of May, which are likely to have contributed to the top line in the fiscal second quarter. On its last earnings call, management highlighted that consolidated same-store sales fell 4% in the first four weeks of the second quarter compared with a 29.5% decline in the first quarter. This suggests that the reopening of stores is likely to have continued to aid sales in the second quarter.
DICKS Sporting Goods, Inc. Price and EPS Surprise
DICKS Sporting Goods, Inc. price-eps-surprise | DICKS Sporting Goods, Inc. Quote
Furthermore, the company has been displaying strong online showdown amid the coronavirus pandemic. It is expected to have witnessed continued momentum in online sales, owing to the shift in consumer preference in recent months. Strong online demand along with leveraging its omni-channel capabilities to fulfill online orders and serve customers is expected to have been key drivers in the fiscal second quarter. Further, the introduction of curbside pickup service across the United States has been aiding customer experience.
On the last quarter’s earnings call, management also noted that solid online performance continued in the second quarter even after stores reopened.
However, for the fiscal second quarter, it expects the persistence of the impacts of coronavirus. Also, the company continues to witness cost pressures, which have been weighing on margins and the bottom line. Higher SG&A expenses, a fall in merchandise margins and occupancy cost deleverage are expected to have been threats to margins in the fiscal second quarter.
What the Zacks Model Unveils
Our proven model predicts an earnings beat for DICK’S Sporting this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
DICK’S Sporting carries a Zacks Rank #3 and an Earnings ESP of +49.07%.
Other Stocks With Favorable Combinations
Here are some other companies you may want to consider, as our model shows that these too have the right combination of elements to post an earnings beat.
Big Lots, Inc. (BIG - Free Report) currently has an Earnings ESP of +5.04% and a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.
Best Buy Co., Inc. (BBY - Free Report) presently has an Earnings ESP of +0.95% and a Zacks Rank #2.
Dollar General Corporation (DG - Free Report) currently has an Earnings ESP of +4.89% and a Zacks Rank #2.
Biggest Tech Breakthrough in a Generation
Be among the early investors in the new type of device that experts say could impact society as much as the discovery of electricity. Current technology will soon be outdated and replaced by these new devices. In the process, it’s expected to create 22 million jobs and generate $12.3 trillion in activity.
A select few stocks could skyrocket the most as rollout accelerates for this new tech. Early investors could see gains similar to buying Microsoft in the 1990s. Zacks’ just-released special report reveals 8 stocks to watch. The report is only available for a limited time.
See 8 breakthrough stocks now>>