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Factors Likely to Influence DICK'S Sporting's (DKS) Q3 Earnings

·5-min read

DICK’S Sporting Goods Inc. DKS is expected to register year-over-year sales growth when it releases third-quarter fiscal 2021 results on Nov 23. The Zacks Consensus Estimate for third-quarter revenues is pegged at $2.42 billion, indicating an improvement of 0.4% from the year-ago quarter.

The consensus estimate for fiscal third-quarter earnings currently stands at $1.88, which suggests a decline of 6.5% from the year-ago reported number. However, the consensus mark has been revised upward by 3.3% in the past 30 days.

In the last reported quarter, the company’s earnings beat the Zacks Consensus Estimate by 81.4%. It has a trailing four-quarter earnings surprise of 117.4%, on average.

DICK'S Sporting Goods, Inc. Price and EPS Surprise

DICK'S Sporting Goods, Inc. Price and EPS Surprise
DICK'S Sporting Goods, Inc. Price and EPS Surprise

DICK'S Sporting Goods, Inc. price-eps-surprise | DICK'S Sporting Goods, Inc. Quote

Key Factors to Note

DICK’S Sporting has been benefiting from favorable customer demand across all categories and enhanced omni-channel capabilities. Robust sales growth in its core categories — hardlines, apparel and footwear — along with higher average ticket and transactions are likely to have sustained in the fiscal third quarter, thus might have contributed to the top line.

On the last reported quarter’s earnings call, management noted that trends have been robust in the initial part of the fiscal third quarter, thanks to strong sales in the back-to-school season. Gains from the back-to-school season are likely to get reflected in the to-be-reported quarter’s top and bottom lines.

The company has been witnessing strong online show, courtesy of robust online demand and improved omni-channel capabilities including curbside pickup services and BOPIS, which might have favored the fiscal third-quarter performance. Its mobile platform also remains a key growth driver. The company’s to-be-reported quarter performance is expected to have benefited from its investments in e-commerce, technology, store payroll, Team Sports and private brands.

However, the company continues to witness higher compensation and safety expenses associated with the COVID-19 crisis, which are likely to have resulted in higher SG&A expense. The persistence of additional costs related to the ongoing COVID-19 may have weighed on its fiscal third-quarter bottom line to some extent.

What the Zacks Model Unveils

Our proven model predicts an earnings beat for DICK’S Sporting this reporting cycle. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

DICK’S Sporting currently has a Zacks Rank #3 and an Earnings ESP of +27.97%.

More Stocks With Favorable Combination

Here are some other companies worth considering from the same sector as our model shows that these too have the right combination of elements to beat on earnings:

Abercrombie & Fitch ANF currently has an Earnings ESP of +8.27% and a Zacks Rank of 3. The company is expected to have registered top-line growth in third-quarter fiscal 2021. The Zacks Consensus Estimate for ANF's quarterly revenues is pegged at $894.4 million, which suggests an improvement of 9.1% from the prior-year quarter.

You can see the complete list of today's Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for Abercrombie's quarterly earnings moved up 4.7% in the last seven days to 67 cents per share. However, the figure suggested a 12% decline from the year-ago quarter's reported number. ANF has delivered an earnings beat of 510.9%, on average, in the trailing four quarters.

Nordstrom JWN currently has an Earnings ESP of +0.40% and a Zacks Rank #3. JWN is anticipated to have registered top and bottom-line growth in third-quarter fiscal 2021. The Zacks Consensus Estimate for quarterly earnings of 56 cents per share moved up 3.7% in the last seven days and suggests growth of 154.6% from the year-ago quarter's reported number.

The Zacks Consensus Estimate for Nordstrom's quarterly revenues is pegged at $3.54 billion, indicating an improvement of 14.5% from the prior-year quarter. JWN has delivered an earnings beat of 557.3%, on average, in the trailing four quarters.

American Eagle AEO currently has an Earnings ESP of +4.01% and a Zacks Rank #3. The company is expected to have registered top and bottom-line growth in third-quarter fiscal 2021. The Zacks Consensus Estimate for AEO's quarterly revenues is pegged at $1.23 billion, which suggests a rise of 19.1% in the prior-year quarter.

The Zacks Consensus Estimate for American Eagle's quarterly earnings of 61 cents per share moved up by a penny in the last seven days and suggests 74.3% growth from the year-ago quarter. AEO has delivered an earnings beat of 7.5%, on average, in the trailing four quarters.


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Abercrombie & Fitch Company (ANF) : Free Stock Analysis Report

American Eagle Outfitters, Inc. (AEO) : Free Stock Analysis Report

Nordstrom, Inc. (JWN) : Free Stock Analysis Report

DICK'S Sporting Goods, Inc. (DKS) : Free Stock Analysis Report

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