DICK’S Sporting Goods Q3 Earnings Preview: DKS Up 15.6% Since Last Report

in EARNINGS/INVESTING IDEAS by

DICK’S Sporting Goods, Inc. (NYSE:DKS) is scheduled to report Q3 earnings results on Tuesday, November 26, 2019, at 10:00 AM ET. You can find more information about the conference call here.

The company is expected to report earnings of $0.38/share on revenue of $1.913 billion. The consensus earnings per share (EPS) of $0.38/share is based on a poll of 25 analysts and represents a decline of -2.6% over the same quarter last year when the company reported earnings of $0.39/share.

The revenue forecast of $1.913 billion based on a poll of 19 analysts implies a year-over-year (YoY) growth of 3.0%. Last year the company reported $1.857 billion in revenue for the quarter.

Expected to report EPS decline of -$0.01/share for Q3, 2019
Metric Expected Prior Year YoY Change
Revenue $1,912.91 $1,857.27 3.0%
EPS $0.38 $0.39 -2.6%

Earnings Call Trends

Management has been great at managing analyst expectations historically. The company has a perfect record over the last 8 tracked quarters of exceeding earnings guidance.

What are your expectations from DICK’S Sporting Goods for earnings this quarter? Let us know in the comments!

Analyst Expected vs Reported EPS
Quarter Expected Reported Surprise Result
Q2, 2020 $1.21 $1.26 4.1% Beat
Q1, 2020 $0.59 $0.62 5.1% Beat
Q4, 2019 $1.06 $1.07 0.9% Beat
Q3, 2019 $0.26 $0.39 50.5% Beat
Q2, 2019 $1.06 $1.20 13.2% Beat
Q1, 2019 $0.45 $0.59 31.1% Beat
Q4, 2018 $1.20 $1.22 1.8% Beat
Q3, 2018 $0.26 $0.30 15.4% Beat

One question we always consider here at the Bankers’ Tribune is how important are earnings reports to DICK’S Sporting Goods’s stock price performance? It’s more important for some companies than for others.

In the following table, we summarize the company’s stock price movements after earnings releases. The “Price Day Prior” column shows the closing stock price on the day before the earnings report, and the “Price Next Day” column shows the stock price at the end of the trading day after the earnings report. After the last earnings report for the period ending August 3, 2019, the stock price reacted by falling by -1.8%.

Stock Price Performance After Earnings
Report Date Price Day Prior Price Next Day Change % Result
2019-08-22 $32.97 $32.37 -1.8% Decline
2019-05-29 $35.78 $34.25 -4.3% Decline
2019-03-12 $38.89 $35.81 -7.9% Decline
2018-11-28 $36.33 $35.52 -2.2% Decline

Fundamentals And Technical Analysis

DICK’S Sporting Goods is currently trading at $39.37/share, down -0.1% for the day. The company is trading at approximately 94.8% of its 52-week high of $41.53/share. The company’s stock price is up 21.6% since the last earnings report and down -5.2% over the previous week. The company’s 14 Day Relative Price Index (RSI) of 47.02 suggests the company is trading in technically neutral territory. The RSI is considered overbought when above 70 and oversold when below 30.

The current share price implies a price-to-earnings (P/E) multiple of 11.5x and a forward P/E multiple of 11.6x. DICK’S Sporting Goods’s current share price also implies a price-to-book (P/B) multiple of 2.0x. The following table summarizes some other key fundamental ratios:

Data as of November 25, 2019
Metric Value
Last Fiscal Period FY2020.Q2
Period End Date August 3, 2019
Stock Price (Current) $39.37
P/E Ratio 11.5x
P/E Ratio (Fwd) 11.6x
PEG Ratio -8.6
Total Debt to Capital (%) 49.3%
Levered Free Cash Flow $156.9 million
Enterprise Value / EBITDA 10.2x

Source: Finbox

Company Profile: DICK’S Sporting Goods, Inc.

DICK’S Sporting Goods, Inc. is a mid-cap stock with a market capitalization of $3.562 billion and a total enterprise value of $6.902 billion. The company operates in the Consumer Discretionary sector and Specialty Retail industry.

DICK’S Sporting Goods, Inc. operates as a sporting goods retailer primarily in the eastern United States. It provides hardlines, including sporting goods equipment, fitness equipment, golf equipment, and hunting and fishing gear products; apparel; and footwear and accessories.

The company also owns and operates Golf Galaxy, Field & Stream, and other specialty concept stores; and e-commerce Websites, as well as DICK’S Team Sports HQ, a youth sports digital platform that offers free league management services, mobile apps, free league management services, communications and live scorekeeping, custom uniforms and fan wear, and access to donations and sponsorships.

As of August 3, 2019, it operated 727 DICK’S Sporting Goods stores in 47 states, 95 Golf Galaxy stores in 32 states, and 35 Field & Stream stores in 16 states. The company was formerly known as Dick’s Clothing and Sporting Goods, Inc. and changed its name to DICK’S Sporting Goods, Inc. in April 1999.

DICK’S Sporting Goods, Inc. was founded in 1948 and is headquartered in Coraopolis, Pennsylvania.

Expertise: financial technology, analyzing market trends. Brian is a founder at finbox.io, where he’s focused on building tools that make it faster and easier for investors to research stock fundamentals. Brian’s background is in physics & computer science and previously worked as a software engineer at GE Healthcare. He enjoys applying his expertise in technology to help find market trends that impact investors. Brian can be reached at brian@finbox.io or at +1 (516) 778-6257.

Leave a Reply

This site uses Akismet to reduce spam. Learn how your comment data is processed.