Why Dick's Sporting Goods Is Trading Higher Today

Dick's Sporting Goods Inc DKS is trading higher Wednesday morning after the company reported better-than-expected earnings results that crushed the estimates.

What Happened: On Monday, Telsey Advisory Group maintained Dick's Sporting Goods with an Outperform rating and raised the price target from $80 to $98 anticipating a blowout quarter. 

Dick's Sporting Goods reported quarterly earnings of $3.79 per share, which came in much higher than the estimate for $1.12 per share. The company reported quarterly revenue of $2.92 billion, which beat the estimate of $2.18 billion. 

"We also saw a resurgence in our team sports business as kids began to get back out on the field after a year in which many youth sports activities were delayed or cancelled," said Lauren Hobart, president and CEO of Dick's Sporting Goods.

Looking Ahead: Dick's Sporting Goods plans to repurchase a minimum of $200 million of its common shares in 2021. The company also said it expects to open six new Dick's Sporting Goods stores and eight specialty concept stores in 2021.

Price Action: Dick's Sporting Goods traded as high as $91.80 and as low as $30.43 over a 52-week period. 

At last check Wednesday, the stock was up 6.99% in premarket trading at $90.05.

Photo by Mike Kalasnik from Flickr.