Dick’s Sporting Goods Inc. handily beat estimates in the third quarter, driving its shares up 4.7 percent on Tuesday.
Analysts are positive on the results and some raised their estimates for the fourth quarter.
“Dick’s is outperforming the competitive set, despite choppy trends in retail,” said analyst Camilo Lyon of Canaccord Genuity. “[They are] well positioned to drive significant upside to fourth-quarter comps and [earnings per share] should [cold weather] arrive.”
Kate McShane, analyst at Citi Investment Research, said, “[Dick’s] continues to execute on its multi-pronged strategy of new store expansion, broad-based growth across major categories, targeted shop-in-shop concepts for key brands, and digital investments.”
For the period ended Oct. 27, the retailer earned a net income of $50.1 million, or 40 cents a share, up from $41.5 million, or 33 cents, a year earlier.
Revenue jumped 11 percent to $1.31 billion, on the back of a 5.1 percent increase in consolidated same-store sales.
Analysts were expecting EPS to come in at 37 cents, on revenue of $1.3 billion, as polled by Yahoo Finance.
“By growing our store base, partnering with our brands, aggressively building out our omnichannel capabilities and executing our strategic marketing plan, we are driving continued profitable growth,” Dick’s Chairman and CEO Edward Stack said in a statement.
The company also raised its full-year earnings estimate to between $2.53 and $2.55 a share on a 5 percent same-store sales increase.
Dick’s ended the period with $294.5 million, down from $483.4 million a year ago.