Dick's Sporting Goods Inc.DKS is slated to report third-quarter fiscal 2016 results before the opening bell on Nov 15. Last quarter, this sporting goods retailer posted a positive surprise of 20.6%. Moreover, the company surpassed the Zacks Consensus Estimate by an average of 4.7% over the trailing four quarters. Let's see how things are shaping up for this announcement.
Zacks Model Shows Likely Earnings Beat
Our proven model shows that Dick's Sporting is likely to beat earnings estimates this quarter. A stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen. You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter .
DICKS SPRTG GDS Price and EPS Surprise
The Most Accurate estimate stands at 43 cents and the Zacks Consensus Estimate is pegged at 42 cents. So the ensuing +2.38% ESP and the company's Zacks Rank #1 make us reasonably confident of an earnings beat.
Factors Influencing This Quarter
Dick's Sporting has been gaining from the expansion of its omni-channel network, and powerful marketing and merchandising strategies. Also, its customer-oriented strategies, store growth plans and healthy financial status bode well. With these plans underway, the company remains on track to achieve its long-term revenue and store growth targets.
However, management expects to witness some near-term pressure, owing to the major liquidation going on in the sporting goods space. Nonetheless, the company raised its fiscal 2016 earnings and comparable-store sales outlook in the last reported quarter, which ushers in confidence about its future prospects. It projected fiscal 2016 earnings to range from $2.90-$3.05 per share, up from $2.60−$2.90 predicted earlier.
Moreover, estimates for fiscal 2016 and fiscal 2017 witnessed a slight uptrend over the past seven days. However, estimates have been largely stable going into the third-quarter earnings release.
Stocks Poised to Beat Earnings Estimates
Here are some companies you may want to consider as our model shows that these have the right combination of elements to post an earnings beat:
J. C. Penney Company, Inc. JCP has an Earnings ESP of +10.00% and a Zacks Rank #3. You can see the complete list of today's Zacks #1 Rank stocks here .
Nordstrom Inc. JWN has an Earnings ESP of +1.92% and a Zacks Rank #3.
Urban Outfitters Inc. URBN has an Earnings ESP of +4.55% and a Zacks Rank #3.
Zacks' Best Private Investment Ideas
In addition to the recommendations that are available to the public on our website, how would you like to follow all Zacks' private buys and sells in real time?
Our experts cover all kinds of trades… from value to momentum . . . from stocks under $10 to ETF and option moves . . . from stocks that corporate insiders are buying up to companies that are about to report positive earnings surprises. You can even look inside exclusive portfolios that are normally closed to new investors. Starting today, for the next month, you can have unrestricted access. Click here for Zacks' private trades >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.