Very Bad Day for Dick’s Sporting Goods

One of our Watch List stocks, Dick’s Sporting Goods ($DKS), is getting destroyed today. It’s down 18%. Youch!

Dick’s earned 50 cents per share for Q1, two cents less than estimates. I guess people don’t like to golf in the cold.

But the news gets worse. For Q2, they see earnings of 62 to 67 cents per share while consensus was at 82 cents. For the entire year, Dick’s sees earnings of $2.70 to $2.85 per share compared with consensus of $3.08 per share. That’s just ugly.

I don’t have much to say on DKS’ valuation right now, but I’m disappointed to see this news. Until now, Dick’s had delivered fairly consistent earnings growth, which is a trait I very much like to see. If you use $2.81 per share as an estimate for this year, that works out to a forward P/E of 15.5.

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Posted by on May 20th, 2014 at 3:33 pm


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