UPDATE 2-Dick’s Sporting Q1 beats view; sets tepid Q2 outlook

* Q1 EPS $0.22 vs est $0.14 * Q1 sales rise 9 pct, tops
estimates * Sees Q2 EPS $0.37-$0.39 vs est $0.39 * Sees Q2
comparable sales up 4-5 pct

* Shares rise 5 pct
(Adds analysts’ comments, background; updates share movement)

By Viraj Nair

BANGALORE, May 18 (BestGrowthStock) – Dick’s Sporting Goods Inc’s
(DKS.N: ) quarterly profit sailed past analysts’ expectations yet
again, on improved margins, sending the largest publicly traded
U.S. sporting goods retailer’s shares up 5 percent.

However, the company, which historically provides modest
outlooks, projected a conservative profit forecast of 37 cents
to 39 cents a share for the current second quarter.

Analysts on average expect the company to earn 39 cents a
share, according to Thomson Reuters I/B/E/S.

The company, which has topped market estimates for the past
seven quarters, raised its earnings view for the current fiscal
year to $1.41 to $1.44 a share, from $1.32 to $1.35 a share.

Sterne, Agee & Leach analyst Sam Poser, who has a “neutral”
rating on the stock, said the outlook was conservative, but
added that even if Dick’s manages to earn $1.60 a share for the
year, beating expectations throughout, the stock would still be
trading over 18 times forward earnings.

“It’s (still) expensive, where is it going to go?”

Smaller rival Big Five Sporting Goods Corp (BGFV.O: ), which
also reported better-than-expected first-quarter results
earlier this month, currently trades at about 13 times forward
earnings.

Susquehanna Financial Group analyst Christopher Svezia said
the soft outlook for the second quarter reflected slow trends
for retailers going into May.

Dick’s Sporting, which operates 424 stores across 41 states
in the U.S., forecast a 4 to 5 percent rise in sales at stores
open at least a year for the second quarter.

For the first quarter ended May 1, the company earned 22
cents a share, comfortably surpassing analysts’ expectations of
14 cents a share.

Net sales rose 9 percent to $1.05 billion, topping
analysts’ estimates of $1.03 billion. Same-store sales rose 8.2
percent.

Gross profit margin improved to 28.9 percent of sales from
26.1 percent of sales a year ago.

Shares of the Pittsburgh-based retailer rose 5 percent to
$30.00 in early morning trade Monday on the New York Stock
Exchange before paring some gains to trade at $27.

Stock Market Today

(Reporting by Viraj Nair in Bangalore; Editing by Don
Sebastian)

UPDATE 2-Dick’s Sporting Q1 beats view; sets tepid Q2 outlook