Dick's Sporting Goods Analysts Increase Their Forecasts After Strong Earnings

Dick's Sporting Goods Inc DKS reported better-than-expected first-quarter FY24 earnings and raised the outlook on Wednesday.

The company reported first-quarter FY24 sales growth of 6.2% year-on-year to $3.02 billion, beating the analyst consensus estimate of $2.94 billion, according to data from Benzinga Pro.

Comparable store sales increased 5.3% versus a 3.6% growth a year ago. Adjusted EPS of $3.30 beat the analyst consensus estimate of $2.95.

The company’s Board of Directors declared a quarterly dividend of $1.10 per share, payable in cash on June 28 to stockholders of record on June 14.

“Our strong first quarter results continue to prove that DICK’S is the go-to destination for sport and sport culture in the US. The product pipeline from our key brand partners and our vertical brand portfolio has never been better. For example, Nike’s recent Paris innovation summit highlighted a number of breakthrough products across apparel and footwear that we look forward to bringing to our athletes. We have significant momentum and are excited about the differentiated product and compelling experience we are providing,” said Ed Stack, Executive Chairman.

Dick’s Sporting Goods raised FY24 EPS outlook from $12.85 – $13.25 to $13.35 – $13.75 versus the consensus of $13.25. The company also raised FY24 net sales guidance from $13 billion – $13.13 billion to $13.1 billion – $13.2 billion, against an estimate of $13.16 billion.

The company raised its guidance for comparable sales growth to a range of 2.0% to 3.0%, up from 1.0% to 2.0% previously.

Dick's Sporting Goods shares rose 24.3% to close at $189.45 on Wednesday.

These analysts made changes to their price targets on Dick's Sporting Goods after the company reported quarterly results.

• Baird boosted the price target on Dick's Sporting Goods from $225 to $235. Baird analyst Justin Kleber maintained a Neutral rating.
• Morgan Stanley increased Dick's Sporting Goods price target from $235 to $245. Morgan Stanley analyst Simeon Gutman maintained an Overweight rating on the stock.

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