DICK'S Sporting Goods, Inc. ($DKS) Earnings (Q2 FY22)

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


DICK'S Sporting Goods is a company in the Consumer Cyclical sector and operates in the Specialty Retail industry. The company operates as a sporting goods retailer primarily in the eastern United States. DICK'S Sporting Goods was incorporated in 1948 and is currently headquartered in Caraopolis, Pennsylvania. The company made its debut on the stock market in 2002.

DICK'S Sporting Goods Earnings Results:

  • Revenues of $3.11B beating expectations of $3.06B
  • Gross Profit of $1.12B beating expectations of $1.09B
  • Operating Profit of $460M beating expectations of $435M
  • Adjusted EPS of $3.68 beating expectations of $3.57
  • Guidance was boosted for both EPS and Comps
Opinion:
DICK'S Sporting Goods is moving slightly higher today, after reporting earning before the market opened this morning. The company released a solid earnings report with beats on every single metric. They even topped it off with boosting guidance and those beating consensus estimates. I think the thing holding the stock from popping, is the fact that the retail business seems to be in a little bit of a shock. With bigger retail companies reporting earnings last week and having more disappointing earnings results, it kind of influences the smaller retail companies. I think investors are overlooking this report and DICK'S should be moving a lot higher on these results. As far as valuation goes, the P/E ratio is at 6.43, which is way below the industry average of around 25. The P/S ratio is 0.76, which is also below the industry average of 2.67. The growth looks like it will slip to negative next year. Debt outweighs the cash, but the current ratio sits at a comfortable position at 1.88. In my opinion, DICK'S looks solid after the earnings results today. The only thing that brings some worry to me, is the fact that they are expected to have negative growth next year. This is something to really keep an eye out for. Retail is being pursued bearishly right now, so I am staying out of it, unless a report like this comes out. I am not too big on DICK'S, but it could be a dividend hold in your portfolio. It wouldn't be a bad time to scoop it up, especially with the value you can get out of it right now.


*Information from Yahoo Finance, CMLVIZ, Consensus Gurus, CSI Market

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