DICK’S Sporting Goods Inc.


DKS

is expected to register year-over-year growth in both its top and the bottom-line performances when it releases first-quarter fiscal 2021 results on May 26. The Zacks Consensus Estimate for the quarterly earnings currently stands at 94 cents, which suggests a significant rebound from a loss of $1.21 a share incurred in the year-ago quarter. Moreover, the consensus mark has been revised 3 cents upward in the past seven days.

In the last reported quarter, the company’s earnings beat the Zacks Consensus Estimate by 10%. Further, it delivered an earnings surprise of 35.2%, on average, in the trailing four quarters.

Moreover, the consensus estimate for quarterly revenues is currently pegged at $2,160 million, indicating an improvement of about 62% from the year-ago quarter’s reported number.

Key Factors to Note

DICK’S Sporting is benefiting from favorable customer demand, a solid product portfolio and advanced omnichannel capabilities including curbside pickup services and BOPIS. Additionally, the company is witnessing a consistently strong in-store and online sales, which is likely to have continued to aid its top-line performance in the fiscal first quarter. Also, benefits from its collaboration with Instacart to offer same-day delivery service across its stores might have boosted its online sales.

Moreover, DICK’S Sporting’s consolidated same-store sales (comps) have been robust for a while on higher average ticket as well as strength in hardlines, apparel and footwear categories. On its last earnings call, management had noted that a strong business momentum will continue in fiscal 2021. Evidently, it predicted comps and the bottom line to increase year over year for the fiscal first quarter. Also, it anticipated the company’s team sports business to be a tailwind. Moreover, its golf business across both DICK’S and Golf Galaxy seems impressive.

While the aforesaid factors buoy optimism, the company continues to witness pandemic-related cost pressures. In fact, management envisioned COVID-related costs to the tune of $30 million for the first half of fiscal 2021.

What the Zacks Model Unveils

Our proven model predicts an earnings beat for DICK’S Sporting this reporting cycle. The combination of a positive

Earnings ESP

and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. You can uncover the best stocks to buy or sell before they’re reported with our

Earnings ESP Filter

.

DICK’S Sporting currently has a Zacks Rank #2 and an Earnings ESP of +17.59%.

More Stocks With Favorable Combination

Here are a few other companies worth considering from the same sector as our model shows that these too have the right combination of elements to beat on earnings:

Abercrombie & Fitch


ANF

currently has an Earnings ESP of +43.82% and a Zacks Rank of 1. You can see


the complete list of today’s Zacks #1 Rank stocks here


e.

Dollar General


DG

presently has an Earnings ESP of +1.27% and a Zacks Rank #3.

Dollar Tree


DLTR

has an Earnings ESP of +1.40% and a Zacks Rank of 3 at present.

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