Needham & Company Raises PT and Estimates on Dick's Sporting Goods (DKS); Warm Weather, Private Brands Drive SSS Improvement
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Price: $196.34 -2.79%
Rating Summary:
29 Buy, 22 Hold, 1 Sell
Rating Trend:
Down
Today's Overall Ratings:
Up: 12 | Down: 23 | New: 20
Rating Summary:
29 Buy, 22 Hold, 1 Sell
Rating Trend:
Down
Today's Overall Ratings:
Up: 12 | Down: 23 | New: 20
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Needham & Company maintains a 'Buy' on Dick's Sporting Goods (NYSE: DKS) price target raised from $48 to $52.
Analyst, Sean McGowan, said, "DKS reported 1Q results significantly above our estimates and consensus. Sales grew 15% to $1.3B; we were expecting sales of $1.24B and consensus was at $1.23B. SSS rose 7.3% YoY, and GM expanded 112 bps to 30.8%. GM benefited from a favorable sales mix shift and strong private label sales, which offset the adverse impact of marked-down winter goods. The unseasonably warm weather helped to spark sales of warm weather product lines like golf and running, but likely pulled some sales out of 2Q. A recent change in HS baseball regulation mandating that a specific type of bat be used did not meaningfully affect sales. The company updated its 2Q and FY guidance; management now expects 2Q SSS to increase 2-3% and EPS of $0.62-0.63; FY comp store sales should increase 3-4% with EPS of $2.45-2.48 (previously 2-3% and $2.38-2.41)."
"We have raised our FY2012 SSS growth estimate to 4.1% from our prior estimate of 3.4%. Our 2012 EPS estimate is now $2.50, up from $2.43. Our 2013 EPS estimate is now $2.90, up from $2.85."
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 $50.05 yesterday.
Analyst, Sean McGowan, said, "DKS reported 1Q results significantly above our estimates and consensus. Sales grew 15% to $1.3B; we were expecting sales of $1.24B and consensus was at $1.23B. SSS rose 7.3% YoY, and GM expanded 112 bps to 30.8%. GM benefited from a favorable sales mix shift and strong private label sales, which offset the adverse impact of marked-down winter goods. The unseasonably warm weather helped to spark sales of warm weather product lines like golf and running, but likely pulled some sales out of 2Q. A recent change in HS baseball regulation mandating that a specific type of bat be used did not meaningfully affect sales. The company updated its 2Q and FY guidance; management now expects 2Q SSS to increase 2-3% and EPS of $0.62-0.63; FY comp store sales should increase 3-4% with EPS of $2.45-2.48 (previously 2-3% and $2.38-2.41)."
"We have raised our FY2012 SSS growth estimate to 4.1% from our prior estimate of 3.4%. Our 2012 EPS estimate is now $2.50, up from $2.43. Our 2013 EPS estimate is now $2.90, up from $2.85."
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 $50.05 yesterday.
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