Market News

Dick’s Provides Encouraging Q4 Guidance, Ups 2021 Outlook

Dick’s Sporting Goods (DKS) has revised its guidance for the full-year 2021 upward and provided outlook for the fourth quarter. Following positive news for the upcoming earnings, shares of the retail company rose 1.4% on Thursday.

2021 Guidance

Dick’s expects to report 2021 earnings per share in the range of $13.70 to $13.79, up from prior guidance of $12.88 to $13.06. Also, adjusted earnings are anticipated to be between $15.50 and $15.60, compared to previous expectations of $14.60 and $14.80.

Consolidated same-store sales are expected to increase between 25.8% and 26.1%, compared to the previous guidance of 24% and 25%.

Q4 2021 Outlook

Earnings per share (GAAP basis) in the fourth quarter are expected to be between $3 and $3.09. Adjusted earnings are anticipated to be in the range of $3.45 to $3.55.

The company expects its fourth-quarter consolidated same-store sales to increase between 3.7% and 4.7%.

Stock Rating

Wells Fargo analyst Kate Fitzsimons maintained a Hold rating on Dick’s but lowered the price target to $128 from $140. The new price target implies 18.4% upside potential from current level.

Fitzsimons said, “Better than expected but still moderating results, still see lack of visibility into 2022. With DKS 2021E EBIT margins now 12% higher vs. 2019 including GMs +900-bps above, we remain on the sidelines as we still don’t have much clarity on the degree of “structural” vs. one-time gains in DKS’s margin structure looking to 2022/2023, especially considering 2021E sales 40% higher vs. 2019.”

The rest of the Street is cautiously optimistic about the stock and has a Moderate Buy consensus rating based on 9 Buys and 6 Holds. The average Dick’s price target of $152.50 implies 41% upside potential.

Positive Sentiment

TipRanks’ Stock Investors tool shows that investors currently have a Very Positive stance on Dick’s with 18.4% of investors on TipRanks increasing their exposure to DKS stock over the past 30 days.

Download the TipRanks mobile app now

Related News:
Palantir to Deepen Presence in South Korea with HHI Group
Corsair Gaming Acquires 51% Interest in iDisplay
Chinese Regulator Penalizes Alibaba, Tencent & Bilibili

Tired of arriving late to the Big Returns Party?​
Most investors don’t have major gainers like TSLA or NVDA on their radar from the start.
The profusion of opinions on social media and financial blogs makes it impossible to distinguish between real growth potential and pure hype.
​​For the past decade, we have developed and perfected technology designed to help private investors, just like you, find the best opportunities, with the greatest upside potential, in any financial climate.​
Learn More