Most investors have neither the time nor inclination to listen to a company’s earnings call. I, however, have no girlfriend so what else do I have to do? All jokes aside, I intend on evaluating the current state of the business and how that impacts the future. There were many positives and uncertainties that Dick’s (DKS) faces going forward. So sit back, grab some popcorn, and let’s do this.
Numbers (3Q 2017) Starting with financials, Dick’s reported a non – GAAP EPS of $0.30 for the third quarter of 2017. This was at the upper end of their guidance, which was $0.22 – $0.30. Their total sales increased 7.4% to approximately $1.94 billion and their e-commerce business increased 16%. Consolidated same store sales decreased 0.9%. According to Lee Belitsky, their CFO, “the comp decrease was driven by a 0.9% decrease in transactions and no change in ticket.” Dick’s Gross profit for the Q3 was $534.1 million or 27.47% of sales and that was down 3.07% versus last year. Lee Belitsky stated, “this decline was driven by lower merchandise margins in a promotional marketplace that were in line with our previous forecast.” More Numbers (4Q 2017 & 2018) Looking forward to 4Q 2017, Dick’s expects consolidated same store sales to be flat to low-single digit negative. Looking even further in 2018, Dick’s expects comparative store sales to be approximately flat again. They will reduce their new store growth to between 15-20 new stores compared to the 59 they opened in 2017. In addition, Dick’s plans on increasing investments in their e-commerce business, the technology in their stores, store payroll, their digital HQ platform, and their private brands next year. Given these investments, continued gross margin pressure, and flat comps, they are expecting their earnings per diluted share could fall up to 20% in 2018. Enough Numbers (My Thesis)
Their total sales increased 7.4% to approximately $1.94 billion. However, that is only half the picture. Their inventory only rose by 4%. That implies that they do not have any inventories issues. Ed Stack, CEO of Dick’s Sporting Goods, confirmed this in the conference call (the exception is their hunting category). The fact that their sales rose faster than inventory is a sign of a healthy retail business.
Hot Financial Stocks To Own For 2018: Fiserv, Inc.(FISV)
- [By Lee Jackson]
These companies also reported insider selling last week:Corcept Therapeutics Inc. (NASDAQ: CORT), Customers Bancorp Inc. (NYSE: CUBI), Ellie Mae Inc. (NYSE: ELLI), Fiserv Inc. (NASDAQ: FISV) and Ulta Beauty Inc. (NASDAQ: ULTA).
Hot Financial Stocks To Own For 2018: Meritage Corporation(MTH)
- [By JJ Kinahan]
Next week is big for housing numbers. March existing home sales figures are scheduled for Monday and new home sales for March along with the February S&P Case-Shiller Home Price Index on Tuesday. As for homebuilders, Pulte Group, Inc. (NYSE: PHM) is scheduled to report Q1 results Tuesday, and D.R. Horton Inc (NYSE: DHI) is scheduled to report fiscal Q2 numbers on Thursday. The industry already has seen strong Q1 results from Lennar Corporation (NYSE: LEN), and housing starts and building permits in March rose more than expected. These results, as well as those and the economic data from next week could provide clues for the industry going forward. After NVR, Inc. (NYSE: NVR) reports results this morning, Meritage Homes Corp. (NYSE: MTH) releases its Q1 results April 25. We’ll have to wait until next month for some of the other homebuilders, as well as from home improvement companies Home Depot, Inc. (NYSE: HD) and Lowe’s Companies Inc (NYSE: LOW), before we get a more complete snapshot of the housing market.
- [By Jason Hall]
WhenMeritage Homes Corp(NYSE:MTH) last reported earnings to wrap up fiscal 2016, it left investors with reason to be concerned. The company finished the year with strong 15% home-closing revenue growth in the fourth quarter, 19% home-closing revenue growth for the full year, and a 15% jump in earnings per share for the year. Unfortunately, the homebuilder reported that its unit sales, and that its backlog of homes on order, were down from the year-ago period in the fourth quarter — not a positive metric considering the general strength of the new homes market and the company’s success in expanding and growing in recent years.
Hot Financial Stocks To Own For 2018: Chevron Corporation(CVX)
- [By Shanthi Rexaline]
Chevron Corporation (NYSE: CVX) reversed to a profit of $2.68 billion or $1.41 per share from a loss of $725 million or $0.39 per share last year, beating the $0.86 per share consensus by a wide margin.
- [By Paul Ausick]
Chevron Corp. (NYSE: CVX) traded up 2.44% at $117.28. The stock’s 52-week range is $102.55 to $133.88. Volume was about 30% below the daily average of around 7.3 million. The company had no specific news.
- [By Money Morning News Team]
Exxon Mobil is down 9.38%. BP Plc. (NYSE ADR: BP) is down 8.91 %. Chevron Corp. (NYSE: CVX) is down 7.65%. That’s all during a time when the Dow is up 4.3%.
- [By Benzinga News Desk]
Carl Icahn has big plans for the US auto-parts sector — and big retailers like AutoZone (NYSE: AZO), O’Reilly Automotive (NASDAQ: ORLY) and Advance Auto Parts (NYSE: AAP) aren’t going to like them: Link
USA Unit Labor Costs (QoQ) for Q1 2.20% vs 2.50% consensus estimate. Nonfarm Productivity (QoQ) for Q1 0.00% vs -0.20% consensus estimate.
US Services Purchasing Managers' Index for May is schedule for release at 9:45 a.m. ET.
Data on factory orders for April will be released at 10:00 a.m. ET.
The ISM non-manufacturing index for May is schedule for release at 10:00 a.m. ET.
The labor market conditions index for May will be released at 10:00 a.m. ET.
The Treasury is set to auction 3-and 6-month bills at 11:30 a.m. ET.
The TD Ameritrade Investor Movement Index for May is schedule for release at 12:30 p.m. ET.
HSBC upgraded Chevron (NYSE: CVX) from Hold to Buy
Susquehanna upgraded Skechers (NYSE: SKX) from Neutral to Positive
Deutsche Bank upgraded WEX (NYSE: WEX) from Hold to Buy
Pacific Crest downgraded Apple from Overweight to Sector Weight
RBC downgraded Perrigo (NYSE: PRGO) from Sector Perform to Underperform
Wedbush downgraded Endocyte (NASDAQ: ECYT) from Outperform to Neutral
This is a tool used by the Benzinga News Desk each trading day — it's a look at everything happening in the market, in five minutes. To get the full version of this note every morning, click here or email firstname.lastname@example.org.
- [By Paul Ausick]
The DJIA stock posting the largest daily percentage gain ahead of the close Wednesday was Chevron Corp. (NYSE: CVX) which traded up 1.55% at $114.24. The stock’s 52-week range is $97.53 to $119.00. Volume was about 20% below the daily average of around 17 million shares. The company had no specific news.