Hot Move to Watch: Dick’s Sporting Goods Inc (NYSE: DKS)

On Monday, Shares of Dick’s Sporting Goods Inc (NYSE: DKS) lost -2.24% to $34.05. The stock opened its trade at $34.82 and after floating in a price range of $33.90 to $34.86; the stock grabbed the investor’s attention and traded 2.19M shares as compared to its average daily volume of 3.08M shares. The stock’s institutional ownership stands at 99.50%.

DICK’S Sporting Goods, Inc. (DKS), the leading U.S. based full-line omni-channel sporting goods retailer, recently stated sales and earnings results for the first quarter ended May 5, 2018.

First Quarter Results

The Company stated consolidated net income for the first quarter ended May 5, 2018 of $60.10M, or $0.59 per diluted share. The Company stated consolidated net income for the first quarter ended April 29, 2017 of $58.20M, or $0.52 per diluted share.

On a non-GAAP basis, the Company stated consolidated net income for the first quarter ended April 29, 2017 of $60.30M, or $0.54 per diluted share. First quarter 2017 non-GAAP results excluded costs incurred to convert former The Sports Authority (“TSA”) stores.

Net sales for the first quarter of 2018 increased 4.6% to about $1.910B. Adjusted for the calendar shift because of the 53rd week in 2017, consolidated same store sales reduced 2.5% on a 13-week to 13-week comparable basis. Based on an unshifted calendar, consolidated same store sales for the first quarter reduced 0.9%. Consolidated same store sales were influenced by a continued deceleration in hunt and electronics sales, as well as colder spring weather, which resulted in a delayed start to key outdoor sports and activities. First quarter 2017 consolidated same store sales increased 2.4%.

Balance Sheet

The Company ended the first quarter of 2018 with about $105.0M in cash and cash equivalents and about $280.0M in outstanding borrowings under its revolving credit facility. Over the course of the last 12 months, the Company continued to invest in omni-channel growth, while returning over $446.0M to shareholders through share repurchases and quarterly dividends. Total inventory reduced 3.8% at the end of the first quarter of 2018 as contrast to the end of the first quarter of 2017.

DKS has a market value of $3.61B while its EPS was booked as $3.09 in the last 12 months. The stock has 106.04M shares outstanding. In the profitability analysis, the company has gross profit margin of 28.90% while net profit margin was 3.80%. Beta value of the company was 0.50; beta is used to measure riskiness of the security. Analyst recommendation for this stock stands at 2.60.

Eric Clapton

Eric Clapton

I am Eric Clapton and has over 14 years experience in the financial services industry giving me a vast understanding of how news affects the financial markets. I am an active day trader spending the majority of my time analyzing earnings reports and watching commodities and derivatives. I have Masters Degree in Economics from Westminster University with previous roles counting Investment Banking.

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