Results: DICK'S Sporting Goods, Inc. Beat Earnings Expectations And Analysts Now Have New Forecasts

DICK'S Sporting Goods, Inc. (NYSE:DKS) shareholders are probably feeling a little disappointed, since its shares fell 9.3% to US$215 in the week after its latest quarterly results. Revenues were US$3.5b, approximately in line with expectations, although statutory earnings per share (EPS) performed substantially better. EPS of US$4.37 were also better than expected, beating analyst predictions by 14%. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

Check out our latest analysis for DICK'S Sporting Goods

Taking into account the latest results, DICK'S Sporting Goods' 27 analysts currently expect revenues in 2025 to be US$13.2b, approximately in line with the last 12 months. Statutory per share are forecast to be US$13.79, approximately in line with the last 12 months. In the lead-up to this report, the analysts had been modelling revenues of US$13.2b and earnings per share (EPS) of US$13.74 in 2025. The consensus analysts don't seem to have seen anything in these results that would have changed their view on the business, given there's been no major change to their estimates.

The analysts reconfirmed their price target of US$241, showing that the business is executing well and in line with expectations. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. The most optimistic DICK'S Sporting Goods analyst has a price target of US$280 per share, while the most pessimistic values it at US$114. Note the wide gap in analyst price targets? This implies to us that there is a fairly broad range of possible scenarios for the underlying business.

Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. These estimates imply that revenue is expected to slow, with a forecast annualised decline of 2.5% by the end of 2025. This indicates a significant reduction from annual growth of 9.8% over the last five years. Compare this with our data, which suggests that other companies in the same industry are, in aggregate, expected to see their revenue grow 4.8% per year. So although its revenues are forecast to shrink, this cloud does not come with a silver lining - DICK'S Sporting Goods is expected to lag the wider industry.

The Bottom Line

The most important thing to take away is that there's been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share estimates. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that DICK'S Sporting Goods' revenue is expected to perform worse than the wider industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have estimates - from multiple DICK'S Sporting Goods analysts - going out to 2027, and you can see them free on our platform here.

You can also see our analysis of DICK'S Sporting Goods' Board and CEO remuneration and experience, and whether company insiders have been buying stock.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.