Hibbett Sports Earnings: Here’s Why the Stock is Falling Now

Hibbett Sports, Inc. (NASDAQ:HIBB) delivered a profit and beat Wall Street’s expectations, BUT came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company. Shares are down 9.36%.

Hibbett Sports, Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased 33.33% to $0.40 in the quarter versus EPS of $0.30 in the year-earlier quarter.

Revenue: Rose 12.54% to $186.2 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Hibbett Sports, Inc. reported adjusted EPS income of $0.40 per share. By that measure, the company beat the mean analyst estimate of $0.39. It missed the average revenue estimate of $186.32 million.

Quoting Management: Jeff Rosenthal, President and Chief Executive Officer, stated, “We delivered a solid increase in earnings for the second quarter. Comparable store sales were softer than planned due to a challenging economic environment; however, we are encouraged by a strong start to the third quarter. New store performance continues to be strong and we remain confident with the pace of new store openings.”

Key Stats (on next page)…

Revenue decreased 22.41% from $239.99 million in the previous quarter. EPS decreased 60% from $1.00 in the previous quarter.

Looking Forward: Analysts have a more negative outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has fallen from a profit of $0.77 to a profit $0.75. For the current year, the average estimate has moved down from a profit of $3.00 to a profit of $2.94 over the last ninety days.

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