Shares of Dick’s Sporting Goods (NYSE: DKS) gained in pre-market trading on Tuesday after the sporting goods retailer’s comparable sales surged 5.3% in Q4, more than double the analysts’ estimates of a 2.5% increase. The retailer reported adjusted earnings of $2.93 per share in the fourth quarter, a decline of 20% year-over-year but beat analysts’ consensus estimate of $2.88 per share.
Sales increased by 7.3% year-over-year to $3.6 billion and beat analysts’ expectations of $3.45 billion. DKS also doubled its quarterly dividend to $1 per share payable in cash on March 31 to stockholders of record at the close of business on March 17, 2023.
Looking forward, management now expects comparable sales in FY23 to be flat or grow by 2% with earnings per diluted share expected to be between $12.90 and $13.80.
Overall, Wall Street has cautiously optimistic about DKS stock with a Moderate Buy consensus rating based on six Buys and four Holds.