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Dick’s 2Q Beats The Street As Shoppers Go Online
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Dick’s 2Q Beats The Street As Shoppers Go Online

Dick’s Sporting Goods reported 2Q results which exceeded analysts’ expectations fueled by a 194% surge in online sales. Shares of the sporting goods retailer jumped 15.7% on Wednesday.

Dick’s Sporting’s (DKS) 2Q revenues grew 20.1% to $2.71 billion year-on-year and surpassed Street estimates of $2.45 billion. The retailer’s adjusted EPS increased by 155% to $3.21 year-over-year and beat analysts’ expectations of $1.26. Its consolidated same-store sales surged 20.7% during the quarter from the same period a year earlier.

“We had an exceptionally strong Q2 in which we delivered our highest ever quarterly sales and earnings,” Dick’s CEO Edward W. Stack said. “There has also been a greater shift toward athletic and active lifestyle product with people spending more time working and exercising at home.” (See DKS stock analysis on TipRanks).

Following 2Q earnings, Susquehanna analyst Sam Poser lifted the stock’s price target to $65 (20.7% upside potential) from $59 and reiterated a Buy rating. Poser believes that “DKS will continue to execute at a high level and further solidify its position as the dominant national sporting goods retailer.”

Currently, the Street has a cautiously optimistic outlook on the stock. The Moderate Buy analyst consensus is based on 7 Buy, 9 Holds, and 1 Sell. With shares up about 9% year-to-date, the average price target of $49.93 implies downside potential of about 7.5% to current levels.

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