Earnings To Watch: Dick's (DKS) Reports Q2 Results Tomorrow

Sporting goods retailer Dick’s Sporting Goods (NYSE:DKS) will be reporting results tomorrow morning. Here’s what to look for.

Dick's beat analysts’ revenue expectations by 2.7% last quarter, reporting revenues of $3.02 billion, up 6.2% year on year. It was a strong quarter for the company, with optimistic earnings guidance for the full year and a decent beat of analysts’ earnings estimates.

Is Dick's a buy or sell going into earnings? Read our full analysis here, it’s free.

This quarter, analysts are expecting Dick’s revenue to grow 6.5% year on year to $3.43 billion, improving from the 3.6% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $3.85 per share.

The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Dick's has only missed Wall Street’s revenue estimates once over the last two years, exceeding top-line expectations by 3.1% on average.

Looking at Dick’s peers in the specialty retail segment, some have already reported their Q2 results, giving us a hint as to what we can expect. Sally Beauty delivered year-on-year revenue growth of 1.2%, beating analysts’ expectations by 1.1%, and Bath and Body Works reported a revenue decline of 2.1%, falling short of estimates by 1%. Sally Beauty traded up 8.4% following the results while Bath and Body Works was down 10.7%.

Read our full analysis of Sally Beauty’s results here and Bath and Body Works’s results here.

There has been positive sentiment among investors in the specialty retail segment, with share prices up 4.5% on average over the last month. Dick's is up 20% during the same time and is heading into earnings with an average analyst price target of $238.9 (compared to the current share price of $237.2).

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