Is DICK's Sporting (DKS) Poised to Beat Earnings Estimates? - Analyst Blog

We expect DICK's Sporting Goods Inc. DKS, the sporting goods retailer, to beat expectations when it reports fourth-quarter fiscal 2013 results before the market opens on Mar 11.

Why a Likely Positive Surprise?

Our proven model shows that DICK's Sporting may beat earnings because it has the right combination of 2 key components.

Positive Zacks ESP: DICK's Sporting currently has an Earnings ESP of +0.91%. This is because the Most Accurate estimate stands at $1.11 per share, while the Zacks Consensus Estimate is pegged at $1.10.

Zacks #3 Rank (Hold): Note that stocks with a Zacks Rank #1, 2 and 3 have higher chances of beating earnings. The Sell-rated stocks (#4 and 5) should never be considered going into an earnings announcement.

The combination of DICK's Sporting's Zacks Rank #3 (Hold) and Earnings ESP of +0.91% makes us confident of an earnings beat on Feb 11.

What is Driving Better-than-Expected Earnings?

Over time, DICK's Sporting has consolidated its position amid a challenging macroeconomic environment through measures like introduction of new products, effective cost management and store openings. We believe that expansion of direct-to-consumer operations, implementation of omni-channel strategies, effective inventory management and optimum capital allocation will enable the company to sustain its growth momentum.

Other Stocks to Consider

DICK's Sporting is not the only firm we are looking up to this earnings season. The following companies are also likely to beat earnings in the to-be-reported quarter:

Matador Resources Company MTDR with Earnings ESP of +7.14% and a Zacks Rank #3

Tiffany & Co. TIF with Earnings ESP of +0.66% and Zacks Rank #3

Oracle Corp. ORCL with Earnings ESP of +1.49% and a Zacks Rank #3