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DICK'S Sporting (DKS): Stock Poised to Beat Earnings in Q2?

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DICK'S Sporting Goods, Inc. (DKS - Free Report) is scheduled to release second-quarter fiscal 2016 results on Aug 16. The big question facing investors is, whether this sporting goods retailer will be able to deliver a positive earnings surprise in the quarter to be reported. The company’s past performance reveals that it surpassed the Zacks Consensus Estimate in first-quarter fiscal 2016, after witnessing negative earnings surprises in both the fourth and third quarters of fiscal 2015. Let’s see how things are shaping up for this announcement.

DICKS SPRTG GDS Price and EPS Surprise

DICKS SPRTG GDS Price and EPS Surprise | DICKS SPRTG GDS Quote

Zacks Model Shows Likely Earnings Beat

Our proven model shows that DICK’S Sporting is likely to beat earnings estimates this quarter. A stock needs to have both a positive Earnings ESP and a Zacks Rank #1, 2 or 3 for this to happen. The Most Accurate estimate stands at 70 cents and the Zacks Consensus Estimate is pegged at 68 cents. So the ensuing +2.94% ESP and the company’s Zacks Rank #3 (Hold) make us reasonably confident of an earnings beat.

Factors Influencing this Quarter

DICK’S Sporting has been gaining from the expansion of its omni-channel network, and powerful marketing and merchandising strategies. Also, the company’s customer-oriented strategies, store growth plan and healthy financial status bode well. With these plans underway, the company remains on track to reach its long-term revenue and store growth targets.

However, DICK’S Sporting expects to witness some near-term pressure, owing to the major liquidation going on in the sporting goods space. This is evident from the company’s lowered fiscal 2016 earnings view and bleak guidance for the second quarter. For fiscal 2016, the company expects earnings in the range of $2.60−$2.90 per share, against $2.85–$3.00 envisioned earlier. For the second quarter, management expects earnings per share to lie in the band of 62–72 cents. The company had earlier projected comps growth to range from -4% to -1% in the quarter.

Stocks Poised to Beat Earnings Estimates

Here are some companies you may want to consider as our model shows that these have the right combination of elements to post an earnings beat:

Lowe's Companies, Inc. (LOW - Free Report) has an Earnings ESP of +2.13% and a Zacks Rank #2 (Buy).

Best Buy Co., Inc. (BBY - Free Report) has an Earnings ESP of +7.14% and a Zacks Rank #2.

The Children's Place, Inc. (PLCE - Free Report) has an Earnings ESP of +25.00% and a Zacks Rank #2.

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