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Here’s How DICK’S Sporting (DKS) Looks Ahead of Q1 Earnings


DICK’S Sporting Goods Inc. DKS is slated to report first-quarter fiscal 2020 results on Jun 2. The company has a trailing four-quarter positive earnings surprise of 13.6%, on average.

The Zacks Consensus Estimate for first-quarter bottom line is pegged at a loss of 9 cents per share against the year-ago quarter’s earnings of 62 cents. Nevertheless, the loss estimate has narrowed by a couple of cents in the past 30 days. The consensus mark for revenues is pegged at $1.55 billion, which indicates a fall of 19.5% from the figure reported in the year-ago quarter.

DICKS Sporting Goods, Inc. Price and EPS Surprise

DICKS Sporting Goods, Inc. Price and EPS Surprise

DICKS Sporting Goods, Inc. price-eps-surprise | DICKS Sporting Goods, Inc. Quote

Key Factors to Note

Due to the coronavirus outbreak, DICK’S Sporting had shut down all its stores effective Mar 18. COVID-19 induced store closures are likely to have marred the company’s performance in the fiscal first quarter. Apart from this, higher SG&A expenses are likely to be a threat to margins. Notably, adjusted SG&A expenses, as a percentage of sales, increased 77 basis points in fourth-quarter fiscal 2019 due to higher incentive compensation expenses and increased marketing expenses.

Nevertheless, the company is on track to build the best omni-channel experience for athletes. In fact, DICK’S Sporting’s e-commerce business, including contactless curbside pickup and ship from a store, had been operational amid the outbreak. Moreover, the company’s consistent efforts to dispose underperforming businesses and boost comps bode well.

What the Zacks Model Unveils

Our proven model doesn’t conclusively predict an earnings beat for DICK’S Sporting this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

DICK’S Sporting carries a Zacks Rank #5 (Strong Sell) and an Earnings ESP of +429.55%.

Stocks With Favorable Combinations

Here are some companies you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat.

Lovesac Company LOVE currently has an Earnings ESP of +11.17% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.

G-III Apparel GIII presently has an Earnings ESP of +6.67% and a Zacks Rank #3.

Darden Restaurant DRI currently has an Earnings ESP of +17.75% and a Zacks Rank #3.

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