MKM Partners Reiterates Buy on Dick's Sporting Goods (DKS) Following 3Q Report and Guide

November 16, 2016 10:59 AM EST
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Price: $51.78 +0.27%

Rating Summary:
    24 Buy, 16 Hold, 0 Sell

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Today's Overall Ratings:
    Up: 18 | Down: 17 | New: 10
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MKM Partners reiterated a Buy rating and $67.00 price target on Dick's Sporting Goods (NYSE: DKS) following the company's 3Q earnings report. Excluding costs related to the conversion of 22 former Sports Authority stores, EPS increased 7% to $0.48 vs. $0.41 estimates. Consolidated comps increased 5.2% vs. 2.5% estimates and included a 5.5% gain at Dick's and a 3.3% decrease at Golf Galaxy. For 4Q16, MKM continues to expect 5.0% comps vs. guidance of 3%-6% but are trimming ex-items EPS estimates from $1.33 to $1.29 to better reflect guidance of $1.19-$1.31.

Analyst Patrick McKeever commented, "Same-store sales accelerated from 2Q and were the strongest since 4Q13, while EPS were well ahead of our forecast, driven in part by a significant improvement in merchandise margins. Management also raised FY16 guidance while taking what we think is a conservative approach to 4Q, given the warm weather. The stock was up more than 70% YTD going into the print (SPX up 6%) and sold off 7% yesterday (SPX up 1%), which put the forward P/E at only 14.7x. We remain bullish and would use the pullback as a buying opportunity."

For an analyst ratings summary and ratings history on Dick's Sporting Goods click here. For more ratings news on Dick's Sporting Goods click here.

Shares of Dick's Sporting Goods closed at $56.71 yesterday.

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