Hibbett Analysts On Q2 Earnings: 'Back-To-School Off To Strong Start'

Shares of Hibbett Inc HIBB continued to rise in early trading on Monday, after the company reported and earnings beat.

The results came amid an exciting earnings season. Here are some key analyst takeaways from the earnings release.

• B. Riley Securities analyst Anna Glaessgen maintained a Neutral rating, while raising the price target from $37 to $45.
• Baird Equity analyst Justin Kleber reiterated an Outperform rating, while lifting the price target from $50 to $56.

Check out other analyst stock ratings.

B. Riley: Although Hibbett was reporting its fiscal second-quarter results against low expectations, its earnings beat and reiteration of full-year guidance were impressive “in light of a challenging operating environment marred by a mixed consumer backdrop and heightened promotionality” and the guidance reductions by peers Foot Locker Inc FL and Dick's Sporting Goods Inc DKS, Glaessgen said in a note.

“We’re encouraged by signs of stabilizing earnings revision momentum, which has been key to our cautious stance — though we remain hesitant in light of consumer headwinds, as well as the model risk stemming from aggressive inventory clearance in the athletic retail space,” the analyst stated.

Baird Equity: “While comps declined 7.3%, results were in line with consensus (vs. market expectations for a miss), and back-to-school is off to a strong start,” Kleber wrote in a note.

“A challenging consumer spending backdrop and increased promotional activity remain 2H wildcards; however, better fall seasonal assortments, a healthier overall inventory position, and some favorable cost tailwinds (freight/shipping/logistics) lend support to the sales/margin outlook,” he added.

HIBB Price Action: Shares of Hibbett had risen by 0.56% to $45.28 at the time of publication Monday.