Sporting Goods Retailer Performs like All Star ( NYSE: DKS )

Investors are Impressed By Dicks Sporting Goods (NYSE:DKS)’s Earnings Yesterday, Dicks Sporting Goods Inc(NYSE:DKS) reported its fourth-quarter earnings, which largely came in line with analysts’ estimates. However, the company provided solid first quarter earnings, which topped wall street consensus as the company is planning to reduces its inventory lever either by selling those at discount and returning merchandise to vendors. The largest publicly traded U.S. sporting goods retailer’s profit soared 27% to $111.1 million, or 88 cents a share during the quarter, from a year ago quarter profit of $87.5 million, or 71 cents a share. Revenue grew  6% year-over-year to $1.61 billion, compared to analysts’ estimates of 88 cents a share on revenue of $1.61 billion. Going forward, the company guides to earn 36-38 cents a share in the current quarter, versus analysts’ estimates of 36 cents a share. For the full year, earnings are expected $2.38 to $2.41 a share, topping analysts’ estimates of $2.39 a share. Same-store sales are expected to grow by 2-3% for the year and 3-4% for the current quarter. Moreover, the company continued to expand its gross margin with a rise 0.20% during the quarter to 31.80%. The company had shown high inventory level for the quarter ended as some products remained unsold due to unfavorable weather. Following the earnings, Shares of DKS gapped up on Tuesday and made an all-time high of $47.42, but ended the day at $46.89, up 2.90%. So far this year, the stock has soared over 27%. The stock is now up 0.80% to $49.26 after hitting another new high of $47.70.