Big 5 Sporting Goods Earnings: Here’s Why Investors Like These Results

Big 5 Sporting Goods Corp. (NASDAQ:BGFV) delivered a profit and beat Wall Street’s expectations, AND beat the revenue expectation. The revenue beat is a positive sign to shareholders seeking high growth out of the company. Shares are up 4.29%.

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Big 5 Sporting Goods Corp. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased 3300% to $0.34 in the quarter versus EPS of $0.01 in the year-earlier quarter.

Revenue: Rose 12.72% to $246.3 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Big 5 Sporting Goods Corp. reported adjusted EPS income of $0.34 per share. By that measure, the company beat the mean analyst estimate of $0.20. It beat the average revenue estimate of $239.02 million.

Quoting Management: “We are pleased to deliver a quarter of very strong earnings growth, driven by a double-digit increase in same store sales, improvements in customer traffic and average sale and expansion of merchandise and operating margins,” said Steven G. Miller, the Company’s Chairman, President and Chief Executive Officer. “Our operating results significantly exceeded the upper end of our guidance range issued in late February as a result of a stronger than anticipated performance during our March period. We believe these results for the quarter reflect the ongoing enhancements to our merchandise and marketing programs, the continued benefit from the national increase in demand for firearms and ammunition products and more favorable weather conditions in a majority of our markets versus the prior year. Our positive sales trends have continued into the second quarter and we feel well positioned to deliver strong results as we move through the spring and into the summer season.”

Key Stats (on next page)…

Revenue increased 1.1% from $243.61 million in the previous quarter. EPS increased 78.95% from $0.19 in the previous quarter.

Looking Forward: Analysts have a more positive outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has risen from a profit of $0.16 to a profit $0.19. For the current year, the average estimate has moved up from a profit of $0.86 to a profit of $1.05 over the last ninety days.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)