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Here's How DICK'S Sporting (DKS) Looks Ahead of Q1 Earnings
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DICK’S Sporting Goods Inc. (DKS - Free Report) is expected to register year-over-year sales growth when it releases first-quarter fiscal 2024 results on May 29. The Zacks Consensus Estimate for revenues is pegged at $2.9 billion, indicating growth of 3.5% from the year-ago quarter’s reported figure.
The consensus estimate for earnings is pegged at $2.94 per share, which suggests a decline of 13.5% from the year-ago reported number. The consensus mark has moved down a couple of cents in the past seven days.
In the last reported quarter, the company delivered an earnings surprise of 14.9%. It has a trailing four-quarter earnings surprise of 3.1%, on average.
Factors to Note
DICK’S Sporting has been benefiting from strength in its businesses, strong operational execution and store expansion initiatives. The company’s robust strategies, including merchandising initiatives and store-related efforts, also appear encouraging. Strong demand for its key product categories, driven by differentiated assortments across footwear, athletic apparel and team sports, has been aiding its top-line performance.
Healthy transaction growth and higher average tickets have been contributing to a solid comparable store sales (comps) performance. These factors are likely to have boosted the company’s top-line performance. Our model predicts comps growth of 2.8%. Gross margin rates have been benefiting from reduced merchandise margin rates due to the normalization of pricing activity. Additionally, lower supply-chain costs have been aiding the gross margin performance for a while.
However, escalating operating costs and expenses amid a high inflationary environment have been concerns. The company has also been witnessing rising SG&A rates, driven by higher wage rates, and increased investments in talent, technology and marketing. These limitations are likely to have hurt the company’s bottom-line performance. As a percentage of sales, we expect adjusted SG&A expenses to increase 10 basis points (bps) to 24.5%. In dollar terms, SG&A expenses are expected to rise 3.7% year over year.
What the Zacks Model Unveils
Our proven model does not conclusively predict 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. But that’s not the case here.
DICK'S Sporting Goods, Inc. Price and EPS Surprise
DICK'S Sporting has an Earnings ESP of -0.71% and a Zacks Rank of 3. You can uncover the best stocks before they’re reported with our Earnings ESP Filter.
Valuation Picture
From a valuation perspective, DICK'S Sporting offers an attractive opportunity, trading at a discount relative to historical and industry benchmarks. With a forward 12-month price-to-earnings ratio of 8.06x, which is below the five-year median of 9.77x and the Retail - Miscellaneous industry’s average of 15.73x, the stock offers compelling value for investors seeking exposure to the sector. Additionally, the current Value Score of A adds weight to this optimistic view. The recent market movements show that DICK'S Sporting’s shares have increased 54.2% in the past six months against the industry's decline 13.9% decline.
Moreover, the growth trajectory for DICK'S Sporting appears promising. The Zacks Consensus Estimate for sales for the current and next fiscal year is pegged at $13.2 billion and $13.7 billion, respectively. These figures indicate year-over-year growth of 1.3% and 4.1%. Similarly, the consensus estimate for earnings per share is pegged at $13.26 and $14.32 for the same periods, which suggests an increase of 2.7% and 8%, respectively. These optimistic projections reinforce the value proposition of investing in DICK'S Sporting.
Stocks to Consider
Here are some companies, which according to our model, have the right combination of elements to post an earnings beat in their upcoming releases.
Deckers Outdoor Corporation (DECK - Free Report) currently has an Earnings ESP of +8.29% and a Zacks Rank of 3. The company is likely to register top-line growth when it reports first-quarter results. The Zacks Consensus Estimate for quarterly revenues is pegged at $777.9 million, which indicates an increase of 15.1% from the figure reported in the prior-year quarter. You can see the complete list of today’s Zacks #1 Rank stocks here.
The consensus estimate for the quarterly earnings per share of $3.03 suggests an increase of 25.7% from the year-ago quarter.
Dollar Tree (DLTR - Free Report) currently has an Earnings ESP of +0.16% and a Zacks Rank of 3. The company is likely to register top-line growth when it reports first-quarter fiscal 2024 results. The consensus mark for DLTR’s quarterly revenues is pegged at $7.6 billion, which suggests growth of 4.2% from the figure reported in the prior-year quarter.
The Zacks Consensus Estimate for Dollar Tree’s earnings has moved down a penny to $1.43 per share in the past seven days. The consensus estimate indicates a drop of 2.7% from the year-ago quarter’s actual.
Ulta Beauty (ULTA - Free Report) presently has an Earnings ESP of +0.12% and a Zacks Rank of 3. The company is likely to register growth in the top line when it reports first-quarter results. The consensus mark for ULTA’s quarterly revenues is pegged at $2.7 billion, which suggests 3.2% growth from the figure reported in the prior-year quarter.
The consensus mark for ULTA’s quarterly earnings has moved down by a penny in the past seven days to $6.23 per share. The consensus estimate suggests a decline of 9.5% from the year-ago quarter’s actual.
Image: Bigstock
Here's How DICK'S Sporting (DKS) Looks Ahead of Q1 Earnings
DICK’S Sporting Goods Inc. (DKS - Free Report) is expected to register year-over-year sales growth when it releases first-quarter fiscal 2024 results on May 29. The Zacks Consensus Estimate for revenues is pegged at $2.9 billion, indicating growth of 3.5% from the year-ago quarter’s reported figure.
The consensus estimate for earnings is pegged at $2.94 per share, which suggests a decline of 13.5% from the year-ago reported number. The consensus mark has moved down a couple of cents in the past seven days.
In the last reported quarter, the company delivered an earnings surprise of 14.9%. It has a trailing four-quarter earnings surprise of 3.1%, on average.
Factors to Note
DICK’S Sporting has been benefiting from strength in its businesses, strong operational execution and store expansion initiatives. The company’s robust strategies, including merchandising initiatives and store-related efforts, also appear encouraging. Strong demand for its key product categories, driven by differentiated assortments across footwear, athletic apparel and team sports, has been aiding its top-line performance.
Healthy transaction growth and higher average tickets have been contributing to a solid comparable store sales (comps) performance. These factors are likely to have boosted the company’s top-line performance. Our model predicts comps growth of 2.8%. Gross margin rates have been benefiting from reduced merchandise margin rates due to the normalization of pricing activity. Additionally, lower supply-chain costs have been aiding the gross margin performance for a while.
However, escalating operating costs and expenses amid a high inflationary environment have been concerns. The company has also been witnessing rising SG&A rates, driven by higher wage rates, and increased investments in talent, technology and marketing. These limitations are likely to have hurt the company’s bottom-line performance. As a percentage of sales, we expect adjusted SG&A expenses to increase 10 basis points (bps) to 24.5%. In dollar terms, SG&A expenses are expected to rise 3.7% year over year.
What the Zacks Model Unveils
Our proven model does not conclusively predict 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. But that’s not the case here.
DICK'S Sporting Goods, Inc. Price and EPS Surprise
DICK'S Sporting Goods, Inc. price-eps-surprise | DICK'S Sporting Goods, Inc. Quote
DICK'S Sporting has an Earnings ESP of -0.71% and a Zacks Rank of 3. You can uncover the best stocks before they’re reported with our Earnings ESP Filter.
Valuation Picture
From a valuation perspective, DICK'S Sporting offers an attractive opportunity, trading at a discount relative to historical and industry benchmarks. With a forward 12-month price-to-earnings ratio of 8.06x, which is below the five-year median of 9.77x and the Retail - Miscellaneous industry’s average of 15.73x, the stock offers compelling value for investors seeking exposure to the sector. Additionally, the current Value Score of A adds weight to this optimistic view. The recent market movements show that DICK'S Sporting’s shares have increased 54.2% in the past six months against the industry's decline 13.9% decline.
Moreover, the growth trajectory for DICK'S Sporting appears promising. The Zacks Consensus Estimate for sales for the current and next fiscal year is pegged at $13.2 billion and $13.7 billion, respectively. These figures indicate year-over-year growth of 1.3% and 4.1%. Similarly, the consensus estimate for earnings per share is pegged at $13.26 and $14.32 for the same periods, which suggests an increase of 2.7% and 8%, respectively. These optimistic projections reinforce the value proposition of investing in DICK'S Sporting.
Stocks to Consider
Here are some companies, which according to our model, have the right combination of elements to post an earnings beat in their upcoming releases.
Deckers Outdoor Corporation (DECK - Free Report) currently has an Earnings ESP of +8.29% and a Zacks Rank of 3. The company is likely to register top-line growth when it reports first-quarter results. The Zacks Consensus Estimate for quarterly revenues is pegged at $777.9 million, which indicates an increase of 15.1% from the figure reported in the prior-year quarter. You can see the complete list of today’s Zacks #1 Rank stocks here.
The consensus estimate for the quarterly earnings per share of $3.03 suggests an increase of 25.7% from the year-ago quarter.
Dollar Tree (DLTR - Free Report) currently has an Earnings ESP of +0.16% and a Zacks Rank of 3. The company is likely to register top-line growth when it reports first-quarter fiscal 2024 results. The consensus mark for DLTR’s quarterly revenues is pegged at $7.6 billion, which suggests growth of 4.2% from the figure reported in the prior-year quarter.
The Zacks Consensus Estimate for Dollar Tree’s earnings has moved down a penny to $1.43 per share in the past seven days. The consensus estimate indicates a drop of 2.7% from the year-ago quarter’s actual.
Ulta Beauty (ULTA - Free Report) presently has an Earnings ESP of +0.12% and a Zacks Rank of 3. The company is likely to register growth in the top line when it reports first-quarter results. The consensus mark for ULTA’s quarterly revenues is pegged at $2.7 billion, which suggests 3.2% growth from the figure reported in the prior-year quarter.
The consensus mark for ULTA’s quarterly earnings has moved down by a penny in the past seven days to $6.23 per share. The consensus estimate suggests a decline of 9.5% from the year-ago quarter’s actual.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.