Dick’s Sporting Goods Inc. Earnings: Profits Grow by Double Digits For Fifth Straight Quarter

Dick’s Sporting Goods Inc. (NYSE:DKS) reported its results for the fourth quarter. Dick’s Sporting Goods is an authentic, full-line sporting goods retailer offering a assortment of brand name sporting goods equipment, apparel, and footwear in a specialty store environment.

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Dick’s Sporting Goods Earnings Cheat Sheet for the Fourth Quarter

Results: Net income for Dick’s Sporting Goods Inc. rose to $111.1 million (88 cents per share) vs. $87.5 million (71 cents per share) in the same quarter a year earlier. This marks a rise of 27% from the year-earlier quarter.

Revenue: Rose 6.1% to $1.61 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: Dick’s Sporting Goods Inc. fell in line with the mean analyst estimate of 88 cents per share. Analysts were expecting revenue of $1.61 billion.

Quoting Management: “In the fourth quarter, we generated record earnings, maintained an exceptionally strong balance sheet with our cash balance growing $188 million, initiated our first ever dividend, and announced a 12-month share repurchase program,” said Edward W. Stack, Chairman and CEO. “In 2012, we will continue to build on our momentum as we profitably grow the business with earnings expected to increase approximately 18 to 19%, while simultaneously investing in key strategic areas including new stores, eCommerce, inventory management systems and private brands.”

Key Stats:

Last quarter marked the fifth consecutive quarter of increasing gross margins, as the company’s gross margin expanded 0.2 percentage point from the year-earlier quarter to 31.8%. Over that span, margins have grown, on average, 1.2 percentage points per quarter on a year-over-year basis.

The company has now seen its net income rise for three quarters in a row. In the third quarter, net income rose more than twofold and in the second quarter, the figure rose 43.3%.

Revenue has increased for four quarters in a row. Revenue increased 9.3% to $1.18 billion in the third quarter. The figure rose 6.6% in the second quarter from the year earlier and climbed 6.3% in the first quarter from the year-ago quarter.

The company met estimates last quarter after toppling them in the two previous quarters. In the third quarter, it topped the mark by 6 cents, and in the second quarter, it was ahead by 2 cents.

Looking Forward: The average estimate for the first quarter of the next fiscal year remains unchanged at 36 cents a share. At $2.02 per share, the average estimate for the fiscal year has fallen from $2.03 ninety days ago.

(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)

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To contact the reporter on this story: Derek Hoffman at staff.writers@wallstcheatsheet.com

To contact the editor responsible for this story: Damien Hoffman at editors@wallstcheatsheet.com