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