Dick’s shares fall on weak out­look

The Republican Herald - - BUSINESS -

NEW YORK — The out­look for next year from Dick’s Sport­ing Goods over­shad­owed a strong quar­ter and pushed shares down sharply in early trad­ing Tues­day.

The com­pany, based just out­side of Pitts­burgh, ex­pects a sharp profit drop in 2018 as it boosts its on­line spend­ing at a time of tight­en­ing mar­gins and flat sales.

“We ex­pect earn­ings per di­luted share to de­cline by as much as 20 per­cent in 2018,” CEO Ed­ward Stack said.

The com­pany re­ported a 25 per­cent profit drop dur­ing the third quar­ter to $36.9 mil­lion, or 35 cents per share. Earn­ings, ad­justed for pre­tax gains, were 30 cents per share, which topped Wall Street ex­pec­ta­tions by four cents, ac­cord­ing to a sur­vey by Zacks In­vest­ment Re­search.

Rev­enue rose 7.4 per­cent to $1.94 bil­lion, also beat­ing Street fore­casts.

For the cur­rent quar­ter end­ing in Jan­uary, Dick’s ex­pects its per-share earn­ings to range from $1.12 to $1.24. An­a­lysts sur­veyed by Zacks had fore­cast ad­justed earn­ings per share of $1.10.

The com­pany ex­pects ful­lyear earn­ings in the range of $2.92 to $3.04 per share. That’s a shift from a prior range of $2.85 to $3.05 per share.

Shares of Dick’s Sport­ing Goods Inc. have de­clined 50 per­cent since the be­gin­ning of the year. The stock has de­clined 56 per­cent in the last 12 months.

Shares fell al­most 7 per­cent, to $24.55, at the open­ing bell.

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