DICK'S Sporting Goods Inc. (NYSE:DKS) Q3 Fiscal 2024 Earnings Preview

• Analysts predict a slight decline in EPS and revenue for DICK'S Sporting Goods in Q3 fiscal 2024, with EPS estimates ranging from $2.67 to $2.69.
• Despite a challenging macroeconomic environment, there's optimism for another earnings surprise based on DKS's past performance.
• Financial metrics reveal a P/E ratio of approximately 14.89 and a debt-to-equity ratio of 0.67, indicating a moderate level of debt and a solid market valuation.

DICK'S Sporting Goods Inc. (NYSE:DKS) is a leading retailer in the sporting goods industry, offering a wide range of sports equipment, apparel, and footwear. As the company prepares to release its third-quarter fiscal 2024 earnings on November 26, analysts are closely watching the expected financial performance. Competitors in the sector include companies like Academy Sports and Outdoors and Big 5 Sporting Goods.

Wall Street estimates DKS's earnings per share (EPS) to be $2.67, while the Zacks Consensus Estimate suggests a slightly higher EPS of $2.69. This represents a 5.6% decline from the previous year. Despite this anticipated drop, the consensus estimate for earnings has seen a slight increase recently, indicating some optimism among analysts.

Revenue projections for DKS are around $3.02 billion, reflecting a 0.8% decrease from the same quarter last year. The Zacks Consensus Estimate aligns closely with this figure, suggesting revenues will be around $3 billion. This slight decline in sales is attributed to higher pre-opening expenses and a challenging macroeconomic environment.

In the previous quarter, DKS delivered an earnings surprise of 15.9%, and it has maintained an average earnings surprise of 15% over the last four quarters. This track record suggests the potential for another earnings surprise, which could positively impact the stock's price. However, if the results fall short of expectations, the stock may experience a decline.

DKS's financial metrics provide insight into its market valuation. With a price-to-earnings (P/E) ratio of approximately 14.89 and a price-to-sales ratio of about 1.28, the market's valuation of its earnings and sales is evident. The company's debt-to-equity ratio of 0.67 indicates a moderate level of debt, while a current ratio of 1.77 shows its ability to cover short-term liabilities.