We have maintained our long-term Outperform recommendation on
Big 5 Sporting Goods Corp.
) based on the company's better-than-expected quarterly results
for the third consecutive quarter.
Big 5 Sporting has surpassed the Zacks Consensus Estimate in 3 of
the trailing 4 quarters in the range of negative 66.7% to
positive 50.0%. The average surprise over the last 4 quarters
remained positive at 2.7%.
Driven by strong top-line performance along with effective cost
management, Big 5 Sporting's earnings for fourth-quarter 2012
jumped nearly four-fold to 19 cents per share against 5 cents
reported in the comparable year-ago quarter, and came a penny
ahead of the Zacks Consensus Estimate. The company's sales
grew 7.4% year over year to $243.6 million and surpassed the
Zacks Consensus Estimate of $242.0 million.
Big 5 Sporting now anticipates earnings per share in the range of
18 cents to 24 cents per share in first-quarter 2013 compared
with a penny recorded in the first quarter of 2012. Further, in
anticipation of favorable weather conditions and higher demand
for firearms and ammunition products, management expects
same-store sales in first-quarter 2013 to grow in the
Following strong quarterly performance for the fourth quarter and
a robust outlook, the Zacks Consensus Estimates have been showing
an upward trend. For fiscal 2012 and 2013, the Zacks Consensus
Estimate was raised by 17 cents and 9 cents to $1.07 and $1.23
per share in the last 30 days, respectively.
Further, we believe Big 5 Sporting continues to progress well
with its growth initiatives, which include expanding its store
base and bringing in technological advancements to better serve
its patrons. The company leverages an extensive network of stores
to effectively penetrate into its target markets, which in turn,
enables the company to generate healthy sales and gain market
share. For full-year 2013, the company targets to open nearly 15
to 20 new outlets, of which 3 will be relocations. Further, the
company plans to close 3 relocated stores.
Moreover, the company's new business intelligence system and
distribution channel will help significantly reduce the operating
Other Stocks Worth Considering
Big 5 Sporting currently has a Zacks Rank #1 (Strong Buy) rating.
Other stocks worth considering in the retail space are
), which has a Zacks Rank #1 (Strong Buy),
Hot Topic Inc.
Hastings Entertainment Inc.
), both of which hold a Zacks Rank #2 (Buy).
BIG 5 SPORTING (BGFV): Free Stock Analysis
CABELAS INC (CAB): Free Stock Analysis Report
HASTING ENTMT (HAST): Free Stock Analysis
HOT TOPIC INC (HOTT): Free Stock Analysis
To read this article on Zacks.com click here.