Dick's Sporting Goods cleared earnings estimates for its Q2 results early Wednesday and hiked its outlook. Shares of the sports retailer tumbled from a buy zone after the opening bell.
Dick's Sporting Goods reported a 55% increase in earnings to $4.37 per share adjusted, well above FactSet forecasts for $3.86 per share and the best gain in years. Sales rose 7.8% to $3.47 billion, topping expectations of $3.44 billion.
Comparable sales climbed 4.5% for the quarter, outpacing analyst views of 3.4% growth.
CEO Lauren Hobart in the release also noted an increase in average customer tickets and transactions.
Dick's Sporting Goods raised its 2024 earnings guidance to $13.55 per share-$13.90 per share, up from its previous outlook of $13.35 to $13.75.
That raised the midpoint by 22.5 cents to $13.72 a share, though that's after beating Q2 views by 51 cents. FactSet expects full-year earnings of $13.84 per share.
Dick's lifted its comparable sales forecast to 2.5% to 3.5% growth, compared to its prior guidance of a 2% to 3% increase. The sporting goods seller maintained its revenue outlook of $13.1 billion to $13.2 billion in sales, just below analyst views of $13.26 billion.
The company's board on Sept. 3 declared a quarterly dividend of $1.10 per share, which is payable on Oct. 4.
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Dick's Sporting Goods Stock
DKS stock pared declines to 4.9% Wednesday and closed above its 50-day moving average. Shares tumbled more than 9% in early trade and had dropped below their 50-day line on the move.
Before the open, shares were trading in a buy zone for a double-bottom base following an Aug. 15 breakout above the 227.25 buy point.
However, the dive below its 50-day line in heavy volume as well as the 7% or more drop both indicated sell signals.
Still, Dick's Sporting Goods vaulted 50% this year.
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