Dick’s Sporting Goods Inc. (NYSE:DKS) shares are trading higher Wednesday following several analyst updates. Here’s what you need to know.
What To Know: Analysts notes are rolling in after Dick's Sporting Goods reported third-quarter financial results on Tuesday. The company reported adjusted earnings per share of $2.75 for the third quarter, surpassing the analyst consensus of $2.68. Revenue for the quarter climbed 0.5% year-over-year to $3.06 billion, beating expectations of $3.03 billion, per Benzinga Pro.
Dick’s also raised its full-year 2024 earnings outlook to a new range of $13.65 to $13.95 per share, up from a range of $13.55 to $13.90 per share. Current estimates are calling for full-year earnings of $13.88 per share. Net sales are now projected at $13.2 billion to $13.3 billion, compared to the prior range of $13.1 billion to $13.2 billion.
Multiple analyst firms weighed in on the company’s quarterly results following the print, which appears to be adding to the momentum in the name this week.
- UBS upgraded the stock to Buy and increased its price target to $260.
- Loop Capital maintained a Hold rating and raised its price target from $220 to $225.
- Truist Securities reiterated a Buy rating and slightly raised its price target from $256 to $258.
- JPMorgan maintained a Neutral rating and increased its price target from $215 from $230.
In a note to clients, JPMorgan analyst Christopher Horvers highlighted Dick’s solid execution and strategic investments, including elevated store concepts like House of Sport and Field House. However, the analyst flagged risks from elevated inventory levels, which rose 13.5% year-over-year, primarily in footwear and fleece.
Horvers also pointed to Dick's broader strategy of differentiating itself through premium merchandise and omnichannel advancements. While the company continues to expand its market share, JPMorgan expects more modest margin improvements as expenses rise, including rent and SG&A costs.
Telsey analyst Joseph Feldman also noted Dick's strong market position, premium product offerings and momentum from brand partnerships with names like Hoka, On and Nike.
“These brands, together with its private label portfolio (~13% of sales), have allowed the company to bridge the gap between performance and lifestyle. Dick’s also continues to elevate and modernize its omnichannel capabilities and roll out new and exciting store concepts, like House of Sport and Field House, making it the go-to destination for all things athletic,” Feldman said.
What Else:
- Store Expansion: Dick’s opened three House of Sport stores in the third quarter, bringing the total to 19, with plans for 15 more in 2025. The company also launched five new Field House stores and is phasing out its Warehouse Clearance concept in favor of Going, Going, Gone! locations.
- GameChanger Growth: The company's SaaS-based GameChanger platform saw 21% growth in unique users year-over-year, contributing to a projected $100 million in 2024 sales.
DKS Price Action: Dick’s Sporting goods shares were up by 0.96% at $214.25 at the time of writing, according to Benzinga Pro.
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Photo via Wikimedia Commons.
