Dick’s Sporting Goods Racing Higher on Guidance

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Dick’s Sporting Goods (DKS) could see higher highs.

After running from about $50 to a current price of $109.85, DKS could retest prior highs of about $140.  All after analysts at Cowen raised their price target on the stock following better than expected earnings guidance.

Now, for the fourth quarter, DKS now expects to see adjusted EPS of $3.45 to $3.55, as compared to initial forecasts for $2.92 a share.

With that, Cowen raised its target price to $154 from $145, while maintaining an outperform rating.  Also, according to Barron’s, “Dick’s said it expects same-store sales to increase between 3.7% to 4.7% in the fourth quarter. The company forecast fiscal-year same-store sales to rise 25.8% to $26.1%, higher than previous guidance.”

Looking back at Q3 2021, the company reported that consolidated same store increased 12.2% on top of a 23.2% increase in the third quarter of 2020 and a 6.0% increase in the third quarter of 2019, according to a company press release.

It also announced third quarter 2021 earnings per diluted share of $2.78 and non-GAAP earnings per diluted share of $3.19, up 51% and 59% respectively versus earnings per diluted share of $1.84 and non-GAAP earnings per diluted share of $2.01 during the third quarter of 2020.  And it raised full year 2021 earnings per diluted share guidance to $12.88 to 13.06 and raises its full year 2021 non-GAAP earnings per diluted share guidance to $14.60 to 14.80.

Overall, not too shabby.

Recent weakness may be opportunity with Dick’s Sporting Goods.