Shares of Dick’s Sporting Goods (DKS) jumped almost 7% in pre-market trading after the sporting goods retailer posted better-than-expected Q1 results, driven by strong net sales and margin expansion. Moreover, the company provided upbeat guidance for 2021.
Dick’s reported Q1 adjusted earnings of $3.79 per share, which outpaced the Street’s estimate of $1.00 per share by a wide margin. The company recorded a loss of $1.71 per share in the prior-year quarter.
Net sales surged 119% year-over-year to $2.92 billion, topping analysts’ expectations of $2.13 billion. Consolidated same-store sales jumped 115%, including eCommerce sales growth of 14%. (See Dick’s Sporting Goods stock analysis on TipRanks)
Dick’s Sporting Goods CEO Lauren Hobart said, “We are very pleased to deliver another exceptionally strong quarter, achieving record first quarter sales and our highest-ever quarterly earnings, both significantly exceeding our expectations.”
“Looking ahead, we remain very enthusiastic about our business and are pleased to increase our full year sales and earnings outlook,” Hobart added.
For the full year 2021, the company projects net sales to land between $10.515 billion and $10.806 billion, versus the consensus estimate of $9.81 billion. Adjusted EPS is anticipated to range from $8.00 to $8.70, versus analysts’ expectations of $5.32 per share.
Prior to the company’s Q1 report, recently, J.P. Morgan analyst Christopher Horvers lifted the stock’s price target to $78 (7.3% downside potential) from $66 and reiterated a Hold rating.
The rest of the Street is cautiously optimistic about the stock, with a Moderate Buy consensus rating. That’s based on 10 analysts suggesting a Buy, 7 analysts recommending a Hold, and 2 analysts suggesting a Sell. The average analyst price target of $86.29 implies 2.5% upside potential to current levels. Shares have jumped 41.5% over the past six months.
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