Dick’s Sporting Goods Inc DKS reported its quarterly revenues and earnings higher than street expectations but lowered its financial outlook for the year.
Raymond James On Dick’s Sporting Goods: Analyst Bobby Griffin maintains a Market Perform rating for the company.
Management has achieved significant improvement over profitability over the past couple of years and Dick’s Sporting Goods delivered solid results for the latest quarter, Griffin said in a note to clients.
“That said, we are lowering our FY22 comps and earnings estimates to reflect greater likelihood that inflation headwinds will hinder both consumer demand and profitability in the coming quarters, especially in an historically discretionary category (sporting goods and apparel / footwear),” he cloudy
Although the stock has declined over the past few months, “We remain on the sidelines for now due to the very difficult compares facing DKS in FY22, our concerns for a rapid inflationary environment in discretionary demand, and the potential for industry-wide promotions to turn to activity. more normalized, “he added.
Telsey Advisory Group On Dick’s Sporting Goods: Analyst Joseph Feldman reiterated an outperform rating for the company, while lowering the price target from $ 125 to $ 110.
“We were surprised by the magnitude of Dick’s Sporting Goods’ 2022 guidance cut after a relatively strong 1Q22 performance,” Feldman said in a note.
“Dick’s experiencing higher-than-expected cost pressure in products, freight, and wages so far in 2Q22,” the analyst wrote. He further added that the guidance in the revision “seems to result in more challenging trends for company planning through the year due to the softening economic environment and consumer sentiment, rather than a deterioration in its business trends.”
DKS Price Action: Shares of Dick’s Sporting Goods had risen by 7.18% to $ 83.75 at the time of publication Thursday.
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