Sterne Agee Downgrades Dick's Sporting Goods (DKS) to Neutral Following Q1 Miss

Sterne Agee downgraded Dick's Sporting Goods (NYSE: DKS) from Buy to Neutral following weak Q1 results and outlook

Analyst Sam Poser states, "Downgrading from Buy to Neutral as weak golf and hunting businesses overwhelm strength of women's & youth athletic apparel, footwear and team sports. Weakness in golf and hunting is expected to continue throughout the year and is reflected in the reduction of the FY14 EPS & SSS guidance from $3.03-$3.08 & +3%-4% to $2.70-$2.85 & +1%-3%. We do not understand how the SSS of +1.5% in 1Q14 were so much weaker than the guidance for +3%-+4% provided on March 11."

The firm is lowering FY14 & FY15 EPS estimates from $3.17 & $3.75 to $2.84 & $3.39. They are lowering FY14 SSS estimate from +3.7% to +2.5%.

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 $53.16 yesterday.

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