Upcoming AWS Coverage on Big 5 Sporting Goods Post-Earnings Results

LONDON, UK / ACCESSWIRE / November 23, 2016 / Active Wall St. announces its post-earnings coverage on Dick's Sporting Goods Inc. (NYSE: DKS). The company announced its financial results for third quarter fiscal 2016 on November 15, 2016. The largest U.S. based full-line Omni-channel sporting goods retailer's results topped market expectations. The company also increased its FY16 guidance. Register with us now for your free membership at: http://www.activewallst.com/register/.

One of Dick's Sporting Goods' competitors within the Sporting Goods Stores space, Big 5 Sporting Goods Corp. (NASDAQ: BGFV), reported on November 01, 2016, its financial results for the fiscal 2016 Q3 ended October 2, 2016. AWS will be initiating a research report on Big 5 Sporting Goods in the coming days.

Today, AWS is promoting its earnings coverage on DKS; touching on BGFV. Get our free coverage by signing up to:

http://www.activewallst.com/registration-3/?symbol=DKS

http://www.activewallst.com/registration-3/?symbol=BGFV

Earnings Reviewed

For the three months ended on October 29th 30th, 2016, Dick's Sporting Goods reported consolidated net income of $48.9 million, or $0.44 per diluted share, compared to consolidated net income of $47.2 million, or $0.41 per diluted share, for the comparable year ago quarter. On an adjusted basis, the Company reported consolidated net income of $53.6 million, or $0.48 per diluted share, excluding costs the Company incurred to convert former The Sports Authority ("TSA") stores to DICK'S Sporting Goods stores, for Q3 2016 compared to the Company's expectations provided on August 16, 2016 of $0.39 to 0.42 per diluted share. This result beat the $0.42 per share analysts projected.

Dick's Sporting Goods' net sales for Q3 2016 increased 10.2% to approximately $1.8 billion which also exceeded analysts' forecast of $1.77 billion. The company's consolidated same store sales increased 5.2% compared to its guidance of an approximate 2% to 3% increase. Same store sales for DICK'S Sporting Goods increased 5.5%, while Golf Galaxy decreased 3.3%.

Omni-channel Development

Dick's Sporting Goods eCommerce penetration for Q3 2016 was 9.6% of total net sales compared to 8.0% during Q3 2015. In the reported quarter, the Company opened 27 new DICK'S Sporting Goods stores, seven new Field & Stream stores, and two new Golf Galaxy stores. The Company also relocated four DICK'S Sporting Goods stores. Additionally, the Company closed one Field & Stream store. As of October 29, 2016, the Company operated 676 DICK'S Sporting Goods stores in 47 states, with approximately 36.1 million square feet, 74 Golf Galaxy stores in 29 states, with approximately 1.4 million square feet, and 27 Field & Stream stores in 13 states, with approximately 1.3 million square feet.

Cash Flow & Balance Sheet

Dick's Sporting Goods ended Q3 2016 with approximately $85 million in cash and cash equivalents and approximately $261 million in outstanding borrowings under its revolving credit facility. Dick's Sporting Goods' total inventory increased 4.8% at the end of Q3 2016 as compared to the end of Q3 2015.

On November 10, 2016, the Company's Board of Directors authorized and declared a quarterly dividend in the amount of $0.15125 per share on the Company's Common Stock and Class B Common Stock. The dividend is payable in cash on December 30, 2016 to stockholders of record at the close of business on December 9, 2016.

During Q3 2016, Dick's Sporting Goods repurchased approximately 0.2 million shares of its common stock at an average cost of $51.53 per share, for a total cost of $9 million. During the current fiscal year, the Company has repurchased approximately 2.6 million shares of its common stock at an average cost of $44.95 per share, for a total cost of $116 million. The Company has approximately $1.1 billion remaining under its authorizations that extend through 2021.

Acquisition Update

On November 2, 2016, Dick's Sporting Goods completed its purchase for certain assets of Golfsmith International Holdings, Inc. ("Golfsmith"), including its intellectual property and rights to acquire store leases, together with inventory for 30 stores. The purchase price was approximately $43 million, of which $32 million is related to inventory. The Company expects this transaction to be accretive to its fiscal 2017 earnings.

On July 20, 2016, Dick's Sporting Goods completed its purchase of TSA intellectual property assets and the right to acquire 31 store leases. The Company has determined to retain 22 of these leases for conversion to DICK'S Sporting Goods stores.

Outlook

For FY16, Dick's Sporting Goods anticipates earnings per diluted share in the range of $2.91 to 3.03. On a non-GAAP basis, the Company currently anticipates reporting earnings per diluted share in the range of $2.99 to 3.11, excluding costs the Company expects to incur to convert former TSA and Golfsmith stores. Consolidated same store sales are currently expected to increase approximately 3% to 4% compared to a 0.2% decrease in FY15. The Company expects to open 38 new DICK'S Sporting Goods stores and relocate nine DICK'S Sporting Goods stores in 2016. The Company also expects to open nine new Field & Stream stores and two new Golf Galaxy stores in 2016.

For Q4 2016, Dick's Sporting Goods is forecasting reporting earnings per diluted share in the range of $1.15 to 1.27 in Q4 2016. On a non-GAAP basis, the Company is projecting to report earnings per diluted share in the range of $1.19 to 1.31 in Q4 2016. Consolidated same store sales are currently expected to increase approximately 3% to 6% in the upcoming quarter. The Company projects to re-open 3 former TSA stores as new DICK'S Sporting Goods stores in Q4 2016.

Stock Performance

On Tuesday, the stock closed the trading session at $60.11, climbing 2.09% from its previous closing price of $58.88. A total volume of 1.45 million shares have exchanged hands. Dick's Sporting Goods' stock price rallied 3.98% in the last month, 39.70% in the past six months, and 54.92% in the previous twelve months. Furthermore, since the start of the year, shares of the company have surged 71.66%. The stock is trading at a PE ratio of 20.82 and has a dividend yield of 1.00%.

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SOURCE: Active Wall Street