Earnings Preview: Dicks Sporting Goods
Regardless, we're very bullish on DKS long term. They trade at 19x the $1.32 estimate for this year. Not overly cheap but assuming they beat estimates and as the focus moves toward the 2011 (Jan 2012) estimates I'd expect a much higher stock price. Just don't expect a big ramp on beating estimates tomorrow.
Reported earnings of outwear makers like VF Corp (VFC.N) and Columbia Sportswear Co (COLM.O) as well as suppliers like Under Armor Inc (UA.N) and Nike Inc (NKE.N) suggest heightened demand for cold-weather gear, analysts said.
"I think the sell-through was strong for outerwear," SunTrust Robinson & Humphrey analyst David Magee said.
Analysts on average expect the Dick's Sporting to earn 55 cents a share on revenue of $1.29 billion, while Hibbett is expected to earn 31 cents a share, on revenue of $154.4 million, according to Thomson Reuters I/B/E/S.
SmartEstimates from Thomson Reuters StarMine, which lends more weight to recent estimates from top-ranking analysts, puts the average expectation for earnings marginally higher than the consensus for both companies.
However, Stephens Inc analyst Rick Nelson said Wall Street profit estimates "are conservative and beatable," as the cold-weather sales could be even higher than people are expecting.
Concerns over extreme weather conditions dampening sales in some markets seem to have eased.
"The storms that we thought would prevent shopping didn't prevent it as much," Needham and Co analyst Sean McGowan, who is expecting an upside to his profit estimates for the companies, said.