Dick's Sporting Goods Q2 Profits Climb, But Adjusted EPS and Revenues Miss Estimates (DKS)

Dick’s Sporting Goods Q2 Profits Climb, But Adjusted EPS and Revenues Miss Estimates (DKS)


Before the opening bell on Tuesday, sporting goods retailer Dick’s Sporting Goods Inc (DKS) reported a 57% year-over-year rise in second quarter profits on about 7% higher sales. However, both adjusted earnings and revenues came up short of expectations.

The Coraopolis, Pennsylvania-based company posted a second quarter net income of $84.2 million, or 67 cents per share, up from $53.7 million, or 43 cents per share, earned in the same period a year ago.

Dick’s second quarter consolidated adjusted net income, which excludes an asset impairment charge, came in at $88.9 million, or 71 cents per share. According to analysts polled by Thomson Reuters, the company was expected to earn an adjusted 74 cents per share in the quarter.

The company’s net sales rose to $1.53 billion in the quarter, up from $1.44 billion in the same quarter in 2012. Analysts were expecting the company to see $1.57 billion in revenues.

Consolidated same store sales decreased 0.4% in the quarter, which was adjusted for the 53rd week in the calendar in 2012. The company was expecting to see a 2% to 3% increase in same store sales.

“Our second quarter results were below our guidance as a sluggish consumer environment along with higher levels of precipitation and cooler temperatures contributed to a decrease in traffic, resulting in lower than expected same store sales,” said Edward Stack, Chairman and CEO of Dick’s Sporting Goods, in the earnings release.

Looking ahead, Dick’s expects to earn between 37 cents and 39 cents per share in the third quarter, versus analysts’ expectations of 47 cents per share.

For the full year, the company sees adjusted earnings coming in between $2.60 and $2.65 per share. Analysts are expecting the company to see earnings of $2.83 per share in 2013.

Dick’s Sporting Goods shares were down $2.20, or 4.35%, during pre-market trading on Tuesday. The stock is up 11.21% year-to-date.

The Bottom Line
Shares of Dick’s Sporting Goods (DKS) offer a dividend yield of 0.99% based on last night’s closing price of $50.59 and the company’s annualized dividend payout of 50 cents per share.

Dick’s Sporting Goods Inc (DKS) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.4 out of 5 stars.

Be sure to visit our complete recommended list of the Best Dividend Stocks, as well as a detailed explanation of our ratings system here.

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