Dick’s Sporting Goods Stock In Focus After Q3 Earnings Beat: Retail Activity Hits Year-High
Synopsis
The company raised its full year guidance for comparable sales growth to a range of 3.6% to 4.2%, up from 2.5% to 3.5% previously.
Shares of Dick’s Sporting Goods Inc. ($DKS) were up 0.5% on Tuesday morning (11:27 a.m. ET) after rising more than 6% in the pre-market session, following stronger-than-expected third-quarter earnings and improved EPS guidance, lifting retail sentiment ahead of the holiday shopping season.
The sporting goods retailer said its net sales for Q3 stood at $3.06 billion, which was above the $3.03 billion that Wall Street analysts were expecting. Its earnings per share (EPS) stood at $2.75, beating consensus estimates of $2.68 quoted by analysts.
The company attributed its strong performance to an “excellent back-to-school season” and “continued focus” on its strategic pillars.
The sporting goods retailer has raised its full-year 2024 EPS guidance to between $13.65 and $13.95, up from $13.55 to $13.90 issued previously.
Comparable sales growth rate for Q3 stood at 4.2%. Comparable sales growth for the year has been revised to a range of 3.6% to 4.2%, up from the earlier 2.5% to 3.5%.
“We are very proud of our Q3 results and our performance year-to-date…We believe our differentiated product, quality service and powerful omni-channel experience will resonate well with our athletes this holiday season," Lauren Hobart, president and CEO, said in a statement.
Retail sentiment on the stock turned ‘extremely bullish’ (92/100) from ‘bearish’ (59/100) a day ago, marking a year-high. Message volume stayed in the ‘extremely high’ (96/100) zone, also the highest in a year.
In November, the company’s board also declared a quarterly dividend of $1.10 per share for its common stock and class B common stock, payable in cash on Dec. 27, said the statement.
Several Stocktwits users were surprised by the volatility of the stock movement given the numbers, with one user predicting a short squeeze.
DKS stock is up 47.42% year-to-date.
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