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Dick’s Sporting Goods Publishes Strong Results

Dick's Sporting Goods shares are tumbling despite excellent results and rising expectations

Dick’s Sporting Goods stock fell yesterday, despite the company’s third-quarter earnings announcement that beat analyst estimates, prompting it to raise its annual outlook, where the decline in the stock comes after it was rushing to the top, with its rise of 150% during the current year until the closing of the Monday market, but it fell by 10% in trading yesterday afternoon.

The company’s net income rose during the three months ending on October 30 to $316.5 million, or $2.78 per share, after it was $177.2 million, or $1.84 per share a year ago, excluding specific expenses. Dick’s earned about $3.19 per share, easily beating expectations of $1.97, while revenue grew 14% from 2.41 billion a year ago to $2.75 billion, also beating analysts’ estimates of $2.5 billion.

In-store sales, which track revenue in stores opened for at least 12 months, grew 12.2%, while analysts had expected a modest 1.9% growth, and in its report, Dick’s stated that online sales witnessed a 1% jump from last year when many consumers headed to online shopping, but the growth rate is 97% compared to the same period two years ago.

Dick’s expects to earn $12.88-13.06 per share on sales of $12.12-12.19 billion for the full year, and after fiscal adjustments related to COVID-19 expenses, where Dick’s announced that it will earn up to 14.6-14.8 dollars per share, knowing that its previous expectations after adjustment were between 12.45 -12.95 dollars per share with sales not exceeding 11.52-11.72 billion dollars, and on the other hand, and the analysts see adjusted earnings of $13.13 per share, with sales of $11.84 billion.

Including yesterday’s losses, Dick’s Sporting Goods still has a market value of about $11.2 billion.

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