Dick's Sporting Goods jumps 14% after beating earnings expectations and raising its full-year profit outlook
- Dick's Sporting Goods reported third-quarter earnings Tuesday that beat Wall Street expectations and showed the biggest jump in same-store sales since 2013.
- Shares soared as much as 14% on the news.
- The company also raised its full-year profit outlook ahead of the holiday season.
- Watch Dick's Sporting Goods trade live on Markets Insider.
Shares of Dick's Sporting Goods surged as much as 14% Tuesday after the company reported quarterly earnings that handily beat Wall Street expectations.
Here's what the company reported versus what analysts surveyed by Bloomberg expected:
- Adjusted earnings per share: 52 cents per share reported, versus 38 cents per share (expected)
- Revenue: $1.96 billion reported, versus $1.91 billion (expected)
- Same-store sales: +6% reported, versus +2.9% (expected)
The company also boosted its full-year profit outlook and is now expecting adjusted earnings between $3.50 and $3.60 per share, compared to its previous estimate of $3.30 to $3.45 per share.
The raised guidance comes after a quarter of strong sales, driven by increases in average ticket size and number of transactions. In the third quarter, same-store sales jumped the most since 2013, the company said in a press release.
"As we head into the holiday season, we remain very enthusiastic about our business," said CEO Ed Stack in a press release. The retailer also saw growth across its three primary categories of hardlines, apparel, and footwear, he said.
At the same time, eCommerce sales increased 13%. The company opened new eCommerce fulfillment centers during the quarter and improved its website, according to a press release.
The company has a consensus target price of $41.78 and six "buy" ratings, 17 "hold" ratings, and one "sell" rating according to Bloomberg data.
Dick's Sporting Goods is up 26% year-to-date through Monday's close.
