Susquehanna Remains 'Constructive' On Dick's Before Earnings

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In a report published Thursday, Susquehanna analysts maintained a Positive rating on
Dicks Sporting Goods IncDKS
, with a price target of $68, ahead of the company's 1Q release. Dick's is scheduled to report its 1Q results on May 19. The analysts expect the company to report its EPS at $0.53, at the high end of guidance range. "Comp expectations appear achievable (+1.4% consensus vs. +0-2% guidance) against continued momentum in both footwear and apparel," the analysts said. Moreover, there could be sequential growth in golf and hunting. The analysts expect Dick's to reiterate its FY15 EPS guidance at $3.10-$3.20. They believe that momentum has been accelerating so far in 2Q, with improving weather, favorable product mix and increased penetration in more productive categories. In the report Susquehanna noted, "As we look ahead, we continue to like the story due to margin improvements as the year unfolds (1Q will be down due to promotional activity). We believe the recent analyst day was a positive in addressing investor concerns (box size, growth, e-commerce, etc.) while providing strong visibility to $4.00-$4.50 EPS by FY17."
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Posted In: Analyst ColorReiterationAnalyst RatingsSusquehanna
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