Dick’s Sporting Goods Inc. Earnings Cheat Sheet: Beats Analysts’ Estimates

Dick’s Sporting Goods Inc. (NYSE:DKS) reported net income above Wall Street’s expectations for the third 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 Third Quarter

Results: Net income for Dick’s Sporting Goods Inc. rose to $41.5 million (33 cents per share) vs. $16.9 million (14 cents per share) in the same quarter a year earlier. This is a more than twofold rise from the year earlier quarter.

Revenue: Rose 9.3% to $1.2 billion from the year earlier quarter.

Actual vs. Wall St. Expectations: DKS reported adjusted net income of 32 cents per share. By that measure, the company beat the mean estimate of 26 cents per share. It beat the average revenue estimate of $1.16 billion.

Quoting Management: “In the third quarter, we generated sales and earnings meaningfully above our expectations while increasing our margins and further strengthening our balance sheet,” said Edward W. Stack , Chairman and CEO. “As a result of the solid third quarter performance and our expectations for the fourth quarter, we have raised our full-year guidance.”

Key Stats:

The company has now seen net income rise in four straight quarters. In the second quarter, net income rose 43.3% while the figure climbed 43.1% in the first quarter and 29.9% in the fourth quarter of the last fiscal year from the year earlier.

Last quarter marked the fifth consecutive quarter of gross margins expanding as the company’s gross margin expanded 2.4 percentage points to 30.9% from the year earlier quarter. Over that span, margins have grown on average 1.7 percentage points per quarter on a year-over-year basis.

The company has now topped analyst estimates for the last four quarters. It beat the mark by 2 cents in the second quarter, by one cent in the first quarter, and by 4 cents in the fourth quarter of the last fiscal year.

Revenue has risen the past four quarters. Revenue increased 6.6% to $1.31 billion in the second quarter. The figure rose 6.3% in the first quarter from the year earlier and climbed 13.6% in the fourth quarter of the last fiscal year from the year-ago quarter.

Looking Forward: For next quarter, analysts have a more positive outlook about the company’s expected results. The average estimate for the fourth quarter is 87 cents per share, up from 86 cents ninety days ago. Over the past three months, the average estimate for the fiscal year has climbed from $1.94 per to share to $1.95.

Competitors to Watch: Big five Sporting Goods Corp. (NASDAQ:BGFV), Golfsmith Intl. Hldgs., Inc. (NASDAQ:GOLF), Hibbett Sports, Inc. (NASDAQ:HIBB), Cabela’s Incorporated (NYSE:CAB), Sport Chalet, Inc. (NASDAQ:SPCHA), Dover Saddlery, Inc. (NASDAQ:DOVR), Winmark Corporation (NASDAQ:WINA), Gander Mountain Company (GMTA), Sports Direct Intl. Plc (NYSE:SPD), and Fairchild Corporation (FCHDQ).

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