Dick's Tanks on Earnings

Dick's DKS reported its fourth-quarter and fiscal 2012 earnings Monday, and the results weren't pretty. The Coraopolis, Pennsylvania-based firm posted an EPS of $1.03 for the fourth quarter, topping its fourth-quarter 2011 performance by 17 percent. However, analysts were looking for $1.06 per share. Revenue closed at $1.8 billion for the quarter -- up 12 percent year-over-year. This was slightly below the $1.86 billion analysts wanted to see. Full-year EPS finished at $2.53, topping the sporting goods retailer's 2011 performance by 25 percent. However, this figure narrowly missed the Wall Street consensus of $2.56. For the year, revenue climbed 12 percent and rounded out at $5.8 billion. As with quarterly revenue, this figure was just below the Wall Street consensus of about $5.9 billion. Strong Online Growth The company's eCommerce business grew 54 percent during the fourth quarter, representing 8.6 percent of its total sales. For the year, 5.4 percent of Dick's sales came from the eCommerce business. Thirty Eight New Stores Thirty eight Dick's Sporting Goods stores were opened in 2012. This was about on pace with the 36 stores the company opened in 2011. Seven were opened during the fourth quarter, including four in Oklahoma. Interestingly, the company appears to open stores during the third quarter at a much higher rate than the rest of the year. Of the 74 new stores over the past two years, 54 percent (40 stores) have been opened during this period. Perhaps this is to generate maximum interest as students return to school (and athletics) and to capitalize on preparation for basketball, football and hockey seasons. Meanwhile, Dick's did not open any Golf Galaxy stores in 2012. $1 Billion Share Repurchase The company's board of directors has authorized a share repurchase program. It will total up to $1 billion over the next five years. Dick's Scores Low on Guidance Dick's anticipates an EPS of $0.47 to $0.49 for the first quarter, which would place it below the Wall Street consensus of $0.50. For the year, Dick's also plans to come in below estimates. While analysts expect earnings of $2.92, the company anticipates EPS of $2.84 to $2.86. Dick's Strikes Out on Wall Street Dick's has hovered in the high-$40s to low-$50s for most of 2013. However, it is on the verge of falling out of this range on Monday. After closing at $50.60 on Friday, the stock has dropped to around $47 in the morning hours of trading. Dick's has declined around seven percent on Monday.