Market Overview

Cabela's Says Sales Better Than Expected

Share:
Cabela's Says Sales Better Than Expected

Shares of Cabela's (NYSE: CAB) rallied Tuesday after the company raised its guidance. The store, which specializes in hunting and fishing equipment, said that its first-quarter earnings per share would come in $0.10-0.15 better than expected. Currently, analysts had forecast an earnings per share figure of $0.46.

In pre-market trading, Cabela's shares were up better than 5.50%. Over the last three months, shares of Cabela's have rallied more than 15%. After the tragic shooting in Connecticut, shares of Cabela's bottomed near $39. The retailer has an extensive gun department, and investors may have believed that stricter regulation on gun sales would have a negative effect on Cabela's.

Cabela's positive guidance might boost gun stocks on Tuesday. Sturm, Ruger (NYSE: RGR) and Smith & Wesson (NASDAQ: SWHC) both remain heavily shorted, with short interests of roughly 30% and 23%, respectively. Of course, Cabela's sells plenty of items beyond guns, so traders shouldn't assume a carryover effect is guaranteed.

Dicks Sporting Goods (NYSE: DKS) tumbled yesterday after reporting disappointing earnings. Yet, as Dicks sells many of the same things as Cabela's, shares saw a boost early Tuesday, rising over 2%.

At any rate, shares of Cabela's look poised to trade right around their 52-week high on Tuesday.

 

Related Articles (CAB)

View Comments and Join the Discussion!

Posted-In: Earnings News Guidance Pre-Market Outlook Movers Trading Ideas Best of Benzinga

Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Premarket Activity
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Fintech Focus
A daily collection of all things fintech, interesting developments and market updates.
SPAC
Everything you need to know about the latest SPAC news.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at vipaccounts@benzinga.com