Facts That Hold the Key to DICK’S Sporting’s (DKS) Q4 Earnings – March 2, 2023
DICK’S Sporting Goods Inc. (DCS – Free Report) is expected to report fourth-quarter fiscal 2022 results on March 7. The Zacks Consensus estimate for fiscal fourth quarter revenue is $3.4 billion, showing growth of 1.7% over the reported figure for the year-ago quarter.
The consensus estimate for fourth-quarter earnings is $2.86, indicating a 21.4% decline from the number reported last year. However, the consensus level has moved down a penny over the past 30 days.
For fiscal 2022, the Zacks Consensus estimate for revenue is $12.2 billion, indicating a 1% decrease from the reported figure for the prior-year quarter. The Zacks Consensus estimate for fiscal 2022 earnings points to a 23.8% year-over-year decline to $11.96. We expect the company’s total revenue for fiscal 2022 to fall 1.5% year over year to $12.1 billion and bottom line earnings to fall 25% to $11.79 per share.
In the most recent reporting quarter, the company’s earnings beat the Zacks consensus estimate by 16.1%. It has a trailing four-quarter earnings surprise averaging 10.1%.
Factors to consider
DICK’S Sporting has gained strength in its core strategies. The impressive range and its structural change also bode well. It benefits from the favorable change in consumer behavior towards a healthy lifestyle.
DKS was also on course with its store initiatives. DICK’S House of Sport, Golf Galaxy Performance Center, Public Lands and Going, Going, Gone! have performed well. The Golf Galaxy’s two performance centers, featuring TrackMan and BioMech golf technologies, have likely had a positive impact. Progress in the store transformation effort is also expected to have supported its performance for the quarter under review.
In its most recent earnings report, management raised its view of fiscal 2022. For fiscal 2022, the company was expecting negative comps of 1.5% – 3%, compared to the previously mentioned negative 6% to negative 2%. The outlook is also consistent with our comp estimate of minus 2.2%. The company forecast adjusted earnings of $11.50 to $12.10 per share versus the previously mentioned $10.00 to $12.00. This view is consistent with our estimate of $11.79. It was expecting GAAP earnings per share of $10.5 to $11.1, which is our estimate of $10.59. The outlook also compared favorably to the previously mentioned $8.85 to $10.55.
However, the company reeled under heavy promotional activity in support of its growth strategies. The continued investment in hourly wages and talent to support its growth strategies may also have been a concern. These disadvantages are likely to have impacted results for the fourth quarter of the fiscal year.
What the Zacks model reveals
Our proven model clearly predicts a winning shot for DICK’S Sporting this time. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chance of an Earnings Beat. Our Earnings ESP Filter allows you to discover the best stocks to buy or sell before they are reported.
DICK’S Sporting currently has +7.97% Win ESP and Zacks Rank #3.
Shares with a favorable combination
Here are some other companies you might want to consider as our model shows these also have the right combination of elements to pack a winning punch this season:
Casey’s General Store (CASY – Free Report) currently has an Earnings ESP of +14.04% and a Zacks Rank of #3. The company is expected to report a decline in earnings when it reports fiscal 2023 third quarter results. The Zacks Consensus estimate for quarterly earnings per share of $1.67 points to a 2.3% decline from the reported figure for the year-ago quarter.
You can see the full list of today’s Zacks #1 Rank stocks can be found here.
Casey’s sales are expected to grow year over year. The consensus level for revenue is $3.5 billion, up 15.5% from the figure reported in the year-ago quarter.
Burlington shops (BURL – Free Report) currently has an Earnings ESP of +2.90% and a Zacks rank of 2. The company is likely to see an increase in its bottom line when it reports its fourth quarter fiscal 2022 results. Consensus level for BURL’s quarterly earnings is up a penny over the past seven days to $2.72 per share. The consensus estimate points to growth of 7.5% over the reported figure for the same quarter last year.
The Zacks Consensus estimate for Burlington Stores’ quarterly revenue is $2.6 billion, down 0.3% from the figure reported in the year-ago quarter.
Ultimate beauty (ULTA – Free Report) currently has an Earnings ESP of +8.53% and a Zacks Rank of 2. ULTA is likely to post year-over-year improvement in bottom line results while reporting fiscal 2022 fourth quarter results. The Zacks Consensus estimate for quarterly earnings per share of $5.53 indicates a 2.2% improvement over the actual figure for the year-ago quarter.
Ulta Beauty sales are expected to increase compared to the same quarter last year. The Zacks Consensus estimate for quarterly revenue is $3.01 billion, a 10.3% improvement over the figure reported in the year-ago quarter. ULTA has a trailing four-quarter earnings surprise averaging 26.2%.
Stay up to date on upcoming earnings announcements with the Zacks Earnings Calendar.
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