Dick’s Sporting Goods Shares Fall as Full-Year Outlook Disappoints Investors
Dick’s Sporting Goods experienced a decline in stock value after its full-year profit and sales forecasts fell short of analysts’ expectations, despite strong second-quarter results.
Highlights
- Dick’s Sporting Goods increased its annual profit forecast, but the revision still lagged behind analysts’ consensus projections.
- The company’s second-quarter revenue and earnings surpassed analyst estimates.
- Shares dropped 7% in early trading but have gained nearly 50% year-to-date.
Dick’s Sporting Goods (DKS) announced an upward revision to its 2024 earnings guidance on Wednesday, following second-quarter results that exceeded expectations in both revenue and profit.
The retailer raised its full-year earnings per share (EPS) forecast to a range of $13.55 to $13.90, up from the previous guidance of $13.35 to $13.75. However, the midpoint of this updated range remains below the average analyst estimate compiled by Visible Alpha.
Meanwhile, Dick’s maintained its net sales forecast between $13.1 billion and $13.2 billion, which is slightly under analysts’ anticipated $13.25 billion.
Strong Q2 Sales and Earnings Beat Estimates
In the second quarter, Dick’s reported net sales of $3.47 billion, marking a 7.8% increase year-over-year, while earnings per share surged 55% to $4.37, both figures outperforming consensus forecasts.
Despite the positive quarterly performance, the company’s shares fell 7% to $215.70 in Wednesday morning trading, though they still reflect an impressive nearly 50% gain for 2024.
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