DICK'S Sporting Goods, Inc. ($DKS) Earnings (Q1 FY23)

 DICK'S Sporting Goods ($DKS) Earnings and Opinion:


DICK'S is a company in the Consumer Cyclical sector and operates in the Specialty Retail industry. The company operates as a sporting goods retailer, with locations primarily in the eastern United States. DICK'S was founded in 1948 and is currently headquartered in Coraopolis, Pennsylvania. The company was first traded on the stock market in 2002.

DICK'S EPS and Revenue (Q1 FY23):

  • EPS of $2.85 beating expectations of $2.53
  • Revenue of $2.70B beating expectations of $2.63B
DICK'S Q1 Highlights:
  • Comparable stores sales declined 8.4% Y/Y
  • Net sales decreased 7.5% Y/Y
  • Pre-tax income 12.3% of net sales
  • EPS was down 24.8% Y/Y
Opinion:
DICK'S is soaring this trading session, as they reported earnings before the market opened this morning. The company had some really solid beats on expectations this morning, but some other things stood out to me on the financial statements. Obviously Wall Street was a little bit lenient on their expectations because DICK'S was off of their year over year performance. The EPS metric was down 24.8% and they saw sales decline by 7.5%. They also saw the comparable stores sales decline by 8.4%. I think it was the outlook that kept the stock moving upward as they are expecting to hopefully return to pre-pandemic levels. This is the main goal for a lot of companies that were hit hard by Covid. On terms of stock performance, the company is down a tad bit over 38% in the past 6 months. For valuations, DICK'S has a P/E ratio of 4.15 and a P/S ratio of 0.51. These are both really cheap metrics. The return on equity is at a very high percentage and the debt compared to cash is at reasonable levels. I can see some upside with this stock and they also have a dividend intact too. This adds to the return you can make on this stock. I would highly consider getting into this retail business. I am a little concerned that they are overshooting the outlook, but if they can achieve the upside, the company will see some great success.

*Information from DICK'S, Yahoo Finance, Google, CMLVIZ

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