Dick’s Sporting Goods Inc (DKS) shares experienced a dip in early trading on Thursday despite the retailer reporting positive fiscal second-quarter results. The company’s performance came amidst an active earnings season, drawing attention from analysts.
Bank of America Securities analyst Robert Ohmes maintained a Buy rating on DKS, raising the price target from $240 to $250. Ohmes cited the company’s strong second-quarter performance, noting that Dick’s Sporting Goods reported adjusted earnings of $4.37 per share, exceeding Street expectations of $3.86 per share. The company’s same-store sales growth of 4.5% also surpassed consensus estimates of 3.5%, driven by increased sales ticket and transactions.
Oppenheimer analyst Brian Nagel reiterated an Outperform rating on DKS, maintaining a price target of $270. Nagel highlighted the company’s persistent traffic expansion, contributing to the 4.5% same-store sales growth. He attributed this growth to the success of the new House of Sports and Field House store formats. Oppenheimer also noted Dick’s Sporting Goods’ increased full-year guidance for earnings to $13.55-$13.90 per share, up from their previous forecast of $13.35-$13.75 per share.
DA Davidson analyst Michael Baker reaffirmed a Buy rating on DKS, keeping a price target of $265. Baker commended Dick’s Sporting Goods for another strong quarter, exceeding expectations. While the company’s raised outlook reflects a slightly improved second half, it fell short of the second-quarter beat, as consensus estimates underestimated the impact of the profit shift from the third quarter to the second quarter from last year’s extra week.
Despite the positive analyst sentiment and strong earnings report, DKS shares fell by 4.2% to $211.49 at the time of publication on Thursday. This decline suggests that investors may be taking a cautious approach to the company’s future prospects, potentially due to concerns about higher pre-opening expenses in the latter half of the year.
