Dick's Sporting Goods reported better-than-expected first quarter earnings and revenue early Wednesday while also raising its full-year outlook. DKS shares surged Wednesday, signaling a buying opportunity.
The retail chain announced Wednesday that Q1 earnings came in at $3.30 per share, down about 3% compared with a year ago. Meanwhile, revenue increased more than 6% to $3.02 billion. Analysts expected first quarter EPS of $2.96 and sales totaling $2.94 billion, according to FactSet.
Dick's Sporting Goods' comparable sales increased 5.3% in Q1 compared to a 3.6% increase a year ago. The company closed two stores in the first quarter.
The retailer said more customers are shopping at its locations, with average transactions rising too.
For 2024, Dick's Sporting Goods now expects earnings of $13.35-$13.75 per share and sales between $13.1-$13.2 billion. The retailer also predicts comparable sales growth for 2024 of 2%-3%.
In March, DKS forecast 2024 comparable-store sales growth of 1%-2% with earnings between $12.85-13.25 per share. The retailer also predicted net sales of $13-$13.13 billion.
Dick's Sporting Goods Stock
Dick's Sporting Goods stock advanced 15.9% to 225.92 during market trade on Wednesday. DKS shares angled 2.7% higher to 195 on Tuesday.
Shares gapped above their 50-day moving average and broke a trendline in an emerging base. DKS stock is working on a new consolidation with an official buy point of 225.79.
Ahead of Wednesday trade, DKS shares were headed for a second consecutive monthly decline after falling more than 10% in April. Dick's Sporting Goods stock is up more than 40% in 2024, according to MarketSurge analysis.
The stock has an 86 Composite Rating out of a best-possible 99. DKS shares also have solid 93 Relative Strength Rating and a 95 EPS Rating.
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