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Why DICK'S Sporting (DKS) Looks Poised for Q4 Earnings Beat
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DICK’S Sporting Goods Inc. (DKS - Free Report) is expected to register year-over-year sales and earnings growth when it releases fourth-quarter fiscal 2021 results on Mar 8. The Zacks Consensus Estimate for fiscal fourth-quarter revenues is pegged at $3.3 billion, indicating an improvement of 5.8% from the year-ago quarter’s reported figure. The consensus mark for fiscal 2021 revenues is pinned at $12.3 billion, indicating growth of 27.8% from the prior-year reported figure.
The consensus estimate for fiscal fourth-quarter earnings is currently pegged at $3.43, which suggests growth of 41.2% from the year-ago reported number. However, the consensus mark has been unchanged in the past 30 days. The consensus estimate for fiscal 2021 earnings is pegged at $15.45 per share, indicating growth of 152.5% from the prior-year reported figure.
In the last reported quarter, the company’s earnings beat the Zacks Consensus Estimate by 61.1%. It has a trailing four-quarter earnings surprise of 104.2%, on average.
DICK'S Sporting Goods, Inc. Price and EPS Surprise
DICK’S Sporting has been benefiting from favorable customer demand across all categories, improved product assortments and enhanced omni-channel capabilities. The persistence of these trends is likely to have aided the top line and same-store sales in the fiscal fourth quarter. Progress on its transformational plan is also expected to have aided its performance in the to-be-reported quarter.
On the last reported quarter’s earnings call, management noted that the fiscal fourth quarter started on a strong note. Consequently, it raised the fiscal 2021 view. The company anticipates sales of $12,120-$12,190 million for fiscal 2021, with same-store sales growth of 24-25%. Adjusted earnings are envisioned to be $14.6-$14.8 per share.
Moreover, the company has been witnessing a robust gross margin trend, owing to improved merchandise margins and strong sales. For fiscal 2021, it anticipated the gross margin to be higher than that reported in fiscal 2020 and 2019 on the back of improved merchandise margins and lower fixed expenses. SG&A expenses are likely to decline from the figures reported in fiscal 2020 and 2019 due to higher sales. Adjusted EBT is expected to be $1.89-$1.92, with an adjusted EBT margin of 15.7%.
The company has been witnessing a strong online show, courtesy of its robust online demand and improved omni-channel capabilities, which are expected to have favored the fiscal fourth-quarter performance. It has been on track to build the best omni-channel experience for athletes by strengthening the store network and expanding the e-commerce presence. The online unit is expected to have benefited from services like in-store and curbside pickup, reduced promotions, faster delivery, and a better checkout experience. Its mobile platform has also been a key growth driver.
However, the company has been witnessing higher compensation and safety expenses associated with the COVID-19 crisis, which are likely to have led to higher SG&A expenses. The persistence of additional costs related to the ongoing COVID-19 is anticipated to have weighed on its fiscal fourth-quarter bottom line to some extent. The company also predicted elevated freight expenses and supply-chain issues to linger in the fiscal fourth quarter, partly affecting margins.
What the Zacks Model Unveils
Our proven model predicts an earnings beat for DICK’S Sporting this reporting cycle. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances 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 currently sports a Zacks Rank #1 and has an Earnings ESP of +3.47%.
Other Stocks With Favorable Combination
Here are some other companies worth considering from the same sector as our model shows that these too have the right combination of elements to beat on earnings:
Designer Brands (DBI - Free Report) has an Earnings ESP of +12.28% and it currently sports a Zacks Rank of 1. The company is expected to have registered top- and bottom-line growth in fourth-quarter fiscal 2021. The Zacks Consensus Estimate for DBI’s quarterly revenues is pegged at $842.9 million, which suggests a rise of 38.3% from the figure reported in the prior-year quarter.
The Zacks Consensus Estimate for Designer Brands’ quarterly earnings was unchanged in the last 30 days at 14 cents per share, suggesting 126.4% growth from the year-ago quarter's reported number. DBI has delivered an earnings beat of 116%, on average, in the trailing four quarters.
Casey's General Stores (CASY - Free Report) currently has an Earnings ESP of +5.19% and a Zacks Rank #3. The company is anticipated to have registered top and bottom-line growth in fourth-quarter fiscal 2021. The Zacks Consensus Estimate for CASY’s quarterly earnings moved up 1.4% in the last seven days to $1.45 per share, suggesting 39.4% growth from the year-ago quarter's reported number.
The Zacks Consensus Estimate for Casey's quarterly revenues is pegged at $3.06 billion, suggesting growth of 52.3% from the figure reported in the prior-year quarter. CASY has delivered an earnings beat of 20.1%, on average, in the trailing four quarters.
Dollar General (DG - Free Report) currently has an Earnings ESP of +0.68% and a Zacks Rank #3. The company is expected to register top-line growth when it reports fourth-quarter fiscal 2021 numbers. The Zacks Consensus Estimate for DG’s quarterly earnings was unchanged in the last 30 days at $2.56 per share, suggesting a decline of 2.3% from the year-ago quarter's reported number.
The Zacks Consensus Estimate for Dollar General’s quarterly revenues is pegged at $8.7 billion, which suggests growth of 3.4% from the figure reported in the prior-year quarter. DG has delivered an earnings beat of 8.8%, on average, in the trailing four quarters.
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Why DICK'S Sporting (DKS) Looks Poised for Q4 Earnings Beat
DICK’S Sporting Goods Inc. (DKS - Free Report) is expected to register year-over-year sales and earnings growth when it releases fourth-quarter fiscal 2021 results on Mar 8. The Zacks Consensus Estimate for fiscal fourth-quarter revenues is pegged at $3.3 billion, indicating an improvement of 5.8% from the year-ago quarter’s reported figure. The consensus mark for fiscal 2021 revenues is pinned at $12.3 billion, indicating growth of 27.8% from the prior-year reported figure.
The consensus estimate for fiscal fourth-quarter earnings is currently pegged at $3.43, which suggests growth of 41.2% from the year-ago reported number. However, the consensus mark has been unchanged in the past 30 days. The consensus estimate for fiscal 2021 earnings is pegged at $15.45 per share, indicating growth of 152.5% from the prior-year reported figure.
In the last reported quarter, the company’s earnings beat the Zacks Consensus Estimate by 61.1%. It has a trailing four-quarter earnings surprise of 104.2%, on average.
DICK'S Sporting Goods, Inc. Price and EPS Surprise
DICK'S Sporting Goods, Inc. price-eps-surprise | DICK'S Sporting Goods, Inc. Quote
Key Factors to Note
DICK’S Sporting has been benefiting from favorable customer demand across all categories, improved product assortments and enhanced omni-channel capabilities. The persistence of these trends is likely to have aided the top line and same-store sales in the fiscal fourth quarter. Progress on its transformational plan is also expected to have aided its performance in the to-be-reported quarter.
On the last reported quarter’s earnings call, management noted that the fiscal fourth quarter started on a strong note. Consequently, it raised the fiscal 2021 view. The company anticipates sales of $12,120-$12,190 million for fiscal 2021, with same-store sales growth of 24-25%. Adjusted earnings are envisioned to be $14.6-$14.8 per share.
Moreover, the company has been witnessing a robust gross margin trend, owing to improved merchandise margins and strong sales. For fiscal 2021, it anticipated the gross margin to be higher than that reported in fiscal 2020 and 2019 on the back of improved merchandise margins and lower fixed expenses. SG&A expenses are likely to decline from the figures reported in fiscal 2020 and 2019 due to higher sales. Adjusted EBT is expected to be $1.89-$1.92, with an adjusted EBT margin of 15.7%.
The company has been witnessing a strong online show, courtesy of its robust online demand and improved omni-channel capabilities, which are expected to have favored the fiscal fourth-quarter performance. It has been on track to build the best omni-channel experience for athletes by strengthening the store network and expanding the e-commerce presence. The online unit is expected to have benefited from services like in-store and curbside pickup, reduced promotions, faster delivery, and a better checkout experience. Its mobile platform has also been a key growth driver.
However, the company has been witnessing higher compensation and safety expenses associated with the COVID-19 crisis, which are likely to have led to higher SG&A expenses. The persistence of additional costs related to the ongoing COVID-19 is anticipated to have weighed on its fiscal fourth-quarter bottom line to some extent. The company also predicted elevated freight expenses and supply-chain issues to linger in the fiscal fourth quarter, partly affecting margins.
What the Zacks Model Unveils
Our proven model predicts an earnings beat for DICK’S Sporting this reporting cycle. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances 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 currently sports a Zacks Rank #1 and has an Earnings ESP of +3.47%.
Other Stocks With Favorable Combination
Here are some other companies worth considering from the same sector as our model shows that these too have the right combination of elements to beat on earnings:
Designer Brands (DBI - Free Report) has an Earnings ESP of +12.28% and it currently sports a Zacks Rank of 1. The company is expected to have registered top- and bottom-line growth in fourth-quarter fiscal 2021. The Zacks Consensus Estimate for DBI’s quarterly revenues is pegged at $842.9 million, which suggests a rise of 38.3% from the figure reported in the prior-year quarter.
You can see the complete list of today's Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Designer Brands’ quarterly earnings was unchanged in the last 30 days at 14 cents per share, suggesting 126.4% growth from the year-ago quarter's reported number. DBI has delivered an earnings beat of 116%, on average, in the trailing four quarters.
Casey's General Stores (CASY - Free Report) currently has an Earnings ESP of +5.19% and a Zacks Rank #3. The company is anticipated to have registered top and bottom-line growth in fourth-quarter fiscal 2021. The Zacks Consensus Estimate for CASY’s quarterly earnings moved up 1.4% in the last seven days to $1.45 per share, suggesting 39.4% growth from the year-ago quarter's reported number.
The Zacks Consensus Estimate for Casey's quarterly revenues is pegged at $3.06 billion, suggesting growth of 52.3% from the figure reported in the prior-year quarter. CASY has delivered an earnings beat of 20.1%, on average, in the trailing four quarters.
Dollar General (DG - Free Report) currently has an Earnings ESP of +0.68% and a Zacks Rank #3. The company is expected to register top-line growth when it reports fourth-quarter fiscal 2021 numbers. The Zacks Consensus Estimate for DG’s quarterly earnings was unchanged in the last 30 days at $2.56 per share, suggesting a decline of 2.3% from the year-ago quarter's reported number.
The Zacks Consensus Estimate for Dollar General’s quarterly revenues is pegged at $8.7 billion, which suggests growth of 3.4% from the figure reported in the prior-year quarter. DG has delivered an earnings beat of 8.8%, on average, in the trailing four quarters.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.