A Preview Of Dick's Sporting Goods's Earnings

Dick's Sporting Goods DKS releases its next round of earnings this Tuesday, November 24. Get the latest predictions in Benzinga's essential guide to the company's Q3 earnings report.

Net Income, Earnings, And Earnings Per Share

Earnings and EPS are useful metrics of profitability. Total earnings also known as net income is equal to total revenue minus total expenses. Dividing net income by the total number of shares outstanding yields EPS.

Earnings And Revenue

Wall Street analysts see Dick's Sporting Goods reporting earnings of $0.98 per share on sales of $2.22 billion. In the same quarter last year, Dick's Sporting Goods reported EPS of $0.52 on revenue of $1.96 billion.

Why Analyst Estimates And Earnings Surprises Are Important

Analysts who cover this company will publish forward-looking estimates of its revenue and EPS each quarter. Averaging together every EPS and revenue prediction that each analyst makes about a company in a quarter yields the "consensus estimates." A company posting earnings or revenue above or below the consensus estimate is known as an "earnings surprise" and may move the stock by a considerable margin.

If the company were to match the consensus estimate when it reports Tuesday, earnings would be up 88.46%. Revenue would be up 13.15% from the year-ago period. Here is how the Dick's Sporting Goods's reported EPS has stacked up against analyst estimates in the past:

Stock Performance

Shares of Dick's Sporting Goods were trading at $58.53 as of November 20. Over the last 52-week period, shares are up 27.28%. Given that these returns are generally positive, long-term shareholders should be content going into this earnings release.

Do not be surprised to see the stock move on comments made during its conference call. Dick's Sporting Goods is scheduled to hold the call at 10:00:00 ET and can be accessed here.