Q3 Wins Propel DICK'S Sporting Goods to Raise Full-Year Forecast, Shares Surge
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Following the company's revised full-year projection and disclosure of stronger-than-expected Q3 performance, DICK'S Sporting Goods (NYSE:DKS) jumped nearly 9% in premarket trade Tuesday.
Up from their previous range of $13.1 billion to $13.2 billion, the athletic goods company now projects full-year sales between $13.2 billion and $13.3 billion. The mid-point of $13.25 billion matches the consensus among analysts. Rising from $13.55 to $13.90, full-year earnings per share are predicted as $13.65 to $13.95, with a midpoint of $13.80 just below the $13.88 consensus projection.
Comparable sales increase between 3.6% and 4.2%, an increase from the previous 2.5% to 3.5% projection and ahead of the Bloomberg consensus of 3.37%. "We had a great back-to-school season and kept increasing market share," CEO Lauren Hobart said. "Our great performance makes us confident as the holiday season approaches."
Comparable sales in Q3 increased 4.2%, compared to 1.9% year earlier. While inventories climbed 13% to $3.73 billion, net income for the quarter climbed to $228 million from $ 201 million a year prior. Adjusted earnings per share came in at $2.75, $0.06 short of consensus projections. At $3.06 billion, net sales were flat, but they beat the consensus projection by $30 million.
This article first appeared on GuruFocus.