Dick’s Provides Encouraging Q4 Guidance, Ups 2021 Outlook


This article was originally published on TipRanks.com

Dick’s Sporting Goods (DKS) has revised its guidance for the full-year 2021 upward and provided outlook for the fourth quarter. Following positive news for the upcoming earnings, shares of the retail company rose 1.4% on Thursday.

2021 Guidance

Dick’s expects to report 2021 earnings per share in the range of $13.70 to $13.79, up from prior guidance of $12.88 to $13.06. Also, adjusted earnings are anticipated to be between $15.50 and $15.60, compared to previous expectations of $14.60 and $14.80.

Consolidated same-store sales are expected to increase between 25.8% and 26.1%, compared to the previous guidance of 24% and 25%.

Q4 2021 Outlook

Earnings per share (GAAP basis) in the fourth quarter are expected to be between $3 and $3.09. Adjusted earnings are anticipated to be in the range of $3.45 to $3.55.

The company expects its fourth-quarter consolidated same-store sales to increase between 3.7% and 4.7%.

Stock Rating

Wells Fargo analyst Kate Fitzsimons maintained a Hold rating on Dick’s but lowered the price target to $128 from $140. The new price target implies 18.4% upside potential from current level.

Fitzsimons said, “Better than expected but still moderating results, still see lack of visibility into 2022. With DKS 2021E EBIT margins now 12% higher vs. 2019 including GMs +900-bps above, we remain on the sidelines as we still don’t have much clarity on the degree of “structural” vs. one-time gains in DKS’s margin structure looking to 2022/2023, especially considering 2021E sales 40% higher vs. 2019.”

The rest of the Street is cautiously optimistic about the stock and has a Moderate Buy consensus rating based on 9 Buys and 6 Holds. The average Dick’s price target of $152.50 implies 41% upside potential.

Positive Sentiment

TipRanks’ Stock Investors tool shows that investors currently have a Very Positive stance on Dick’s with 18.4% of investors on TipRanks increasing their exposure to DKS stock over the past 30 days.

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