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DICK'S Shows Strength Pre-Q4 Earnings: Will It Beat on Earnings?
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As DICK’S Sporting Goods Inc. (DKS - Free Report) prepares to announce fourth-quarter fiscal 2024 results on March 11, investors are closely watching for insights into its performance this earnings season.
DKS is expected to register a year-over-year decline in sales and earnings for the quarter under review. The Zacks Consensus Estimate for revenues is pegged at $3.75 billion, indicating a drop of 3.3% from the year-ago quarter’s reported figure.
Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar.
The consensus estimate for fiscal fourth-quarter earnings is pegged at $3.47, which suggests a decrease of 9.9% from the year-ago reported number. The consensus mark has moved up a penny in the past 30 days.
In the last reported quarter, the company delivered an earnings surprise of 2.6%. It has a trailing four-quarter earnings surprise of 11.4%, on average.
What the Zacks Model Unveils for DKS
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 chances of an earnings beat. You can uncover the best stocks before they’re reported with our Earnings ESP Filter.
DICK'S Sporting has an Earnings ESP of +0.11% and a Zacks Rank #2 at present.
Factors to Note About DKS’ Upcoming Release
DICK’S Sporting’s quarterly performance is expected to have benefited from solid strategic efforts, brand strength and market share gains. Also, strong comparable store sales (comps) and healthy transaction growth are expected to have acted as tailwinds. The company has also been enhancing service levels through its digital and store experiences to cater well to the athletes’ needs.
DKS is on track with its four strategic pillars, including an omnichannel athlete experience, a differentiated product assortment, deep engagement with the DICK'S brand and knowledgeable, passionate teammates who provide exceptional service. It is progressing well with business optimization to streamline the overall cost structure. Robust omnichannel athlete experience and unique product assortment are added catalysts. Gains from these initiatives are expected to have bolstered performance in the to-be-reported quarter.
DICK’S strategic investments, including the innovative House of Sport and DICK'S Field House concepts, are redefining the sports retail landscape, which bodes well. Building on this strong performance and sustained confidence in the business, the company has raised its full-year outlook. Management raised its comps and earnings per share (EPS) view for fiscal 2024.
DICK'S Sporting Goods, Inc. Price and EPS Surprise
DKS expects comps growth of 3.6-4.2% for fiscal 2024, with consolidated net sales of $13.2-$13.3 billion. It envisions adjusted earnings to be $13.65-$13.95 per share compared with $12.91 in fiscal 2023. The adjusted EPS view assumes 83 million shares outstanding as of fiscal 2024. Management forecasts the gross margin to grow year over year. EBT margin is likely to be 11.2% at the midpoint.
However, DICK’S has been witnessing an uncertain macroeconomic environment. Also, higher wage rates, and increased investments in talent and technology to create a better athlete experience, as well as investments in marketing are expected to have resulted in elevated costs in the to-be-reported quarter.
Management anticipates modest deleveraged adjusted SG&A expenses year over year for the fiscal year, thanks to strategic investments to aid growth in the long term. DICK’S envisions pre-opening expenses for the fourth quarter of fiscal 2024 to be moderately higher than the last year, led by the timing and mix of its store openings. DKS expects a modestly adverse impact of nearly $30 million or 10 cents per share in the fiscal fourth quarter.
DICK'S Sporting’s Valuation Picture
DICK'S Sporting has a forward 12-month price-to-earnings ratio of 14.41X, which is below the five-year high of 24.78X and the Retail - Miscellaneous industry’s average of 16.56X.
The recent market movements show that DICK'S Sporting’s shares have risen 18.5% in the past year against the industry's 9.1% decline.
Image Source: Zacks Investment Research
Three More Stocks With the Favorable Combination
Here are three 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 this reporting cycle.
American Eagle Outfitters (AEO - Free Report) currently has an Earnings ESP of +2.29% and a Zacks Rank of 3. AEO is likely to register a decline in top and bottom lines when it reports fourth-quarter fiscal 2024 results. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for its quarterly revenues is pegged at $1.61 billion, indicating a 4.3% decline from the figure reported in the year-ago quarter. The consensus estimate for AEO’s earnings is pegged at 50 cents per share, implying an 18% decline from the year-ago quarter’s reported actuals. American Eagle has a trailing four-quarter earnings surprise of 12.6%, on average.
Five Below (FIVE - Free Report) currently has an Earnings ESP of +1.45% and a Zacks Rank of 3. FIVE is likely to register growth in the top line when it reports fourth-quarter fiscal 2024 results. The Zacks Consensus Estimate for its quarterly revenues is pegged at $1.38 billion, indicating 3.1% growth from the figure reported in the year-ago quarter.
The consensus estimate for FIVE’s earnings is pegged at $3.35 a share, implying an 8.2% decline from the year-earlier quarter’s level. FIVE has a trailing four-quarter earnings surprise of 39%, on average.
Williams-Sonoma (WSM - Free Report) currently has an Earnings ESP of +3.02% and a Zacks Rank #3. WSM is likely to register top and bottom-line growth when it reports fourth-quarter fiscal 2024 results. The consensus mark for revenues is pegged at $2.34 billion, indicating a rise of 2.5% from the figure reported in the prior-year quarter.
The Zacks Consensus Estimate for quarterly earnings per share is pegged at $2.91, up 7% from the prior-year quarter’s level. WSM has a trailing four-quarter earnings surprise of 17.8%, on average.
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DICK'S Shows Strength Pre-Q4 Earnings: Will It Beat on Earnings?
As DICK’S Sporting Goods Inc. (DKS - Free Report) prepares to announce fourth-quarter fiscal 2024 results on March 11, investors are closely watching for insights into its performance this earnings season.
DKS is expected to register a year-over-year decline in sales and earnings for the quarter under review. The Zacks Consensus Estimate for revenues is pegged at $3.75 billion, indicating a drop of 3.3% from the year-ago quarter’s reported figure.
Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar.
The consensus estimate for fiscal fourth-quarter earnings is pegged at $3.47, which suggests a decrease of 9.9% from the year-ago reported number. The consensus mark has moved up a penny in the past 30 days.
In the last reported quarter, the company delivered an earnings surprise of 2.6%. It has a trailing four-quarter earnings surprise of 11.4%, on average.
What the Zacks Model Unveils for DKS
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 chances of an earnings beat. You can uncover the best stocks before they’re reported with our Earnings ESP Filter.
DICK'S Sporting has an Earnings ESP of +0.11% and a Zacks Rank #2 at present.
Factors to Note About DKS’ Upcoming Release
DICK’S Sporting’s quarterly performance is expected to have benefited from solid strategic efforts, brand strength and market share gains. Also, strong comparable store sales (comps) and healthy transaction growth are expected to have acted as tailwinds. The company has also been enhancing service levels through its digital and store experiences to cater well to the athletes’ needs.
DKS is on track with its four strategic pillars, including an omnichannel athlete experience, a differentiated product assortment, deep engagement with the DICK'S brand and knowledgeable, passionate teammates who provide exceptional service. It is progressing well with business optimization to streamline the overall cost structure. Robust omnichannel athlete experience and unique product assortment are added catalysts. Gains from these initiatives are expected to have bolstered performance in the to-be-reported quarter.
DICK’S strategic investments, including the innovative House of Sport and DICK'S Field House concepts, are redefining the sports retail landscape, which bodes well. Building on this strong performance and sustained confidence in the business, the company has raised its full-year outlook. Management raised its comps and earnings per share (EPS) view for fiscal 2024.
DICK'S Sporting Goods, Inc. Price and EPS Surprise
DICK'S Sporting Goods, Inc. price-eps-surprise | DICK'S Sporting Goods, Inc. Quote
DKS expects comps growth of 3.6-4.2% for fiscal 2024, with consolidated net sales of $13.2-$13.3 billion. It envisions adjusted earnings to be $13.65-$13.95 per share compared with $12.91 in fiscal 2023. The adjusted EPS view assumes 83 million shares outstanding as of fiscal 2024. Management forecasts the gross margin to grow year over year. EBT margin is likely to be 11.2% at the midpoint.
However, DICK’S has been witnessing an uncertain macroeconomic environment. Also, higher wage rates, and increased investments in talent and technology to create a better athlete experience, as well as investments in marketing are expected to have resulted in elevated costs in the to-be-reported quarter.
Management anticipates modest deleveraged adjusted SG&A expenses year over year for the fiscal year, thanks to strategic investments to aid growth in the long term. DICK’S envisions pre-opening expenses for the fourth quarter of fiscal 2024 to be moderately higher than the last year, led by the timing and mix of its store openings. DKS expects a modestly adverse impact of nearly $30 million or 10 cents per share in the fiscal fourth quarter.
DICK'S Sporting’s Valuation Picture
DICK'S Sporting has a forward 12-month price-to-earnings ratio of 14.41X, which is below the five-year high of 24.78X and the Retail - Miscellaneous industry’s average of 16.56X.
The recent market movements show that DICK'S Sporting’s shares have risen 18.5% in the past year against the industry's 9.1% decline.
Image Source: Zacks Investment Research
Three More Stocks With the Favorable Combination
Here are three 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 this reporting cycle.
American Eagle Outfitters (AEO - Free Report) currently has an Earnings ESP of +2.29% and a Zacks Rank of 3. AEO is likely to register a decline in top and bottom lines when it reports fourth-quarter fiscal 2024 results. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for its quarterly revenues is pegged at $1.61 billion, indicating a 4.3% decline from the figure reported in the year-ago quarter. The consensus estimate for AEO’s earnings is pegged at 50 cents per share, implying an 18% decline from the year-ago quarter’s reported actuals. American Eagle has a trailing four-quarter earnings surprise of 12.6%, on average.
Five Below (FIVE - Free Report) currently has an Earnings ESP of +1.45% and a Zacks Rank of 3. FIVE is likely to register growth in the top line when it reports fourth-quarter fiscal 2024 results. The Zacks Consensus Estimate for its quarterly revenues is pegged at $1.38 billion, indicating 3.1% growth from the figure reported in the year-ago quarter.
The consensus estimate for FIVE’s earnings is pegged at $3.35 a share, implying an 8.2% decline from the year-earlier quarter’s level. FIVE has a trailing four-quarter earnings surprise of 39%, on average.
Williams-Sonoma (WSM - Free Report) currently has an Earnings ESP of +3.02% and a Zacks Rank #3. WSM is likely to register top and bottom-line growth when it reports fourth-quarter fiscal 2024 results. The consensus mark for revenues is pegged at $2.34 billion, indicating a rise of 2.5% from the figure reported in the prior-year quarter.
The Zacks Consensus Estimate for quarterly earnings per share is pegged at $2.91, up 7% from the prior-year quarter’s level. WSM has a trailing four-quarter earnings surprise of 17.8%, on average.