Earnings Preview for Dick's Sporting Goods

Dick's Sporting Goods DKS announces its next round of earnings this Wednesday, May 26. Here is Benzinga's everything-that-matters guide for this Wednesday's Q1 earnings announcement.

What Are Earnings, Net Income, And Earnings Per Share?

Earnings and EPS are useful metrics of profitability. Total earnings also known as net income is equal to total revenue minus total expenses. Dividing net income by the total number of shares outstanding yields EPS.

Earnings And Revenue

Analysts covering Dick's Sporting Goods modeled for quarterly EPS of $1.12 on revenue of $2.18 billion. Dick's Sporting Goods reported a per-share loss of $1.21 when it published results during the same quarter last year. Sales in that period totaled $1.33 billion.

What Are Analyst Estimates And Earnings Surprises, And Why Do They Matter?

Wall Street analysts who study this company will publish analyst estimates of revenue and EPS. The averages of all analyst EPS and revenue estimates are called the "consensus estimates"; these consensus estimates can have a significant effect on a company's performance during an earnings release. When a company posts earnings or revenue above or below a consensus estimate, it has posted an "earnings surprise", which can really move a stock depending on the difference between actual and estimated values.

If the company were to report earnings in line when it publishes results Wednesday, earnings would be up 192.56%. Sales would be up 63.54% from the year-ago period. Here is how the company's reported EPS has stacked up against analyst estimates in the past:

Stock Performance

Over the last 52-week period, shares are up 137.27%. Given that these returns are generally positive, long-term shareholders can be content going into this earnings release.

Do not be surprised to see the stock move on comments made during its conference call. Dick's Sporting Goods is scheduled to hold the call at 10:00:00 ET and can be accessed here.