Dick’s Sporting Goods beats Wall Street estimates in the fourth quarter

By: Wajeeh Khan
Wajeeh Khan
Wajeeh is an active follower of world affairs, technology, an avid reader, and loves to play table tennis in his free… read more.
on Mar 9, 2021
  • Dick’s Sporting Goods beats Wall Street estimates in the fourth quarter.
  • The sports goods retailer expects up to £7.16 billion of sales in 2021.
  • Dick's shares were more than 5% down in premarket trading on Tuesday.

Dick’s Sporting Goods Inc. (NYSE: DKS) reported its financial results for the fiscal fourth quarter on Tuesday that topped analysts’ estimates for earnings and revenue.

Dick’s Sporting Goods’ shares were reported more than 5% down in premarket trading on Tuesday. Including the price action, the stock is now exchanging hands at £51.44 per share versus a low of £12.12 per share in March 2020, when the ongoing COVID-19 crisis wreaked havoc on the U.S. retail sector.

Dick’s Sporting Goods’ Q4 financial results versus analysts’ estimates

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Dick’s Sporting Goods said that its net income in the fourth quarter printed at £158.32 million that translates to £1.59 per share. In the comparable quarter of last year, its net income was capped at a lower £50.32 million or 58.39 pence per share.

On an adjusted basis, the sporting goods retailer earned £1.75 per share in Q4. Dick’s valued its sales in the recent quarter at £2.26 billion versus the year-ago figure of £1.88 billion. In separate news from the United States, Thor Industries also published its quarterly earnings report on Tuesday.

As per the American company, its comparable-store sales in Q4 climbed by 19.3% versus a narrower 17.1% growth expected. eCommerce sales, on the other hand, jumped 57% and made up 32% of the retailer’s total quarterly sales.

According to FactSet, experts had forecast Dick’s Sporting Goods to post £2.21 billion of sales in the fourth quarter. The Coraopolis-based company’s digital sales had soared 194% in the fiscal second quarter due to the COVID-19 restrictions.  

Dick’s Sporting Goods’ guidance for fiscal 2021

For 2021, Dick’s Sporting Goods forecasts its sales to fall in the range of £6.88 billion to £7.16 billion. It expects an adjusted EPS of up to £3.75 this year. Consolidated same-store sales, the U.S. retailer added, are likely to fall between a 2% loss to a 2% gain.

In comparison, analysts are calling for £6.87 billion of sales in 2021, £3.71 of earnings per share, and a 1.8% annualised growth in comparable-store sales. Dick’s raised its quarterly dividend to 26 pence per share on Tuesday – a 16% increase from last year.

Dick’s Sporting Goods performed fairly upbeat in the stock market last year with an annual gain of a little under 20%. At the time of writing, the American retail company is valued at £4.95 billion and has a price to earnings ratio of 18.92.

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