Customers walk outside a Dick’s Sporting Goods store in Daly City, California.
Justin Sullivan / Getty Images
Dick’s sporting goods
The stock fell again on Wednesday as markets digested the sportswear retailer’s fourth quarter earnings, which included a poor full-year forecast.
Analysts weigh on results, reported Tuesday, and remained mixed on the stock, with most choosing to stay on the sidelines. For the full year, Dick’s expects earnings between $ 4.40 and $ 5.20 per share on sales of $ 9.54 to $ 9.94 billion. Consensus had called for earnings per share of $ 5.15 on sales of $ 9.56 billion.
Dick’s stock fell 2.1% in the last trade to $ 70.32. Shares are up 130.5% in the past 12 months and are up more than 25% since the start of the year.
That said, there were a couple of cops defending the earnings report. John Kernan of Cowen & Co. repeated an outperform rating for Dick’s Sporting Goods (ticker: DKS) and raised his target by $ 1 to $ 88. “Management appears to be more confident on several fronts,” he notes, from increasing market share to omnichannel sales, and this conservative forecast “leaves room to beat and increase.”
Likewise, Wedbush’s Seth Basham reiterated an outperform rating and target of $ 85, writing, “Dick’s continues to strategically improve its business to be the leading sporting goods retailer in a digital world, but with businesses central to its success . “
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Others were measured more in their assessment. Credit Suisse’s Seth Sigman reiterated his neutral rating and target of $ 72. He says the first and second quarters “should be strong as this category should be better positioned to steer the pandemic to recovery transition. However, based on current full-year projections, it is difficult to argue for a lot of upside in the stock. “
Brian Nagel from Oppenheimer repeated a perform evaluation. His recent stock downgrade reflects “what we expect to be a significant, if not violent, normalization of spending trends as the coronavirus headwinds wear off,” he writes, adding that even the downbeat projections are ultimately too optimistic.
Elsewhere, Raymond James’ Bobby Griffin reiterated an underperform rating of the stocks. While he believes the company could be entering the early stages of a long-term recovery, he doesn’t find the 2021 setup as compelling as recommending new capital purchases compared to other areas of retail.
According to FactSet, 46% of analysts have a hold or equivalent rating on Dick’s while 42% are optimistic. There are three sell ratings for the stock, representing 12% of the 26 analysts surveyed.
Write to Teresa Rivas at [email protected]