NEW YORK (TheStreet) -- Ted Nugent may weep over this one. Shares of Dick's Sporting Goods (DKS) got killed and grilled Tuesday after the company reported earnings that missed consensus estimates and prior guidance. Management also lowered earnings guidance.
The stock fell more than 16% by 11 a.m. to $44.58, and many on StockTwits.com said it could go lower.
Poor golf and hunting gear sales dragged down growth, according to Dick's executives. Same-store sales grew a relatively anemic 1.5%, compared to management's prior forecast of between 3% and 4% growth. "Our difficulties this quarter were isolated to two categories: gold and hunting," said Dick's CEO Edward W. Stack in a statement. "After a very challenging first quarter in golf last year, we expected some further headwinds and only modest improvement, but instead we saw a continued significant decline. In the case of hunting, we planned the business down based on last year's catalysts, but it was even weaker than expected." Dick's reported earnings of 50 cents per share, compared to the 52 cents per share Wall Street analysts had expected. Revenue came in at $1.4 billion, vs. the consensus call for $1.46 billion. Management guided to second quarter EPS of between 62 cents and 67 cents. Dick's anticipates same store sales to increase between 1% and 3%. For the full year, management lowered EPS guidance to between $2.70 and $2.85, vs. the $3.03 to $3.08 initially expected. The results prompted analysts to downgrade the stock.
Dicks Sporting Goods downgraded by Sterne Agee to neutral. http://stks.co/i0dIy $DKS ? Analyst Ratings Network (@AnalystRatingsNetwork) May. 20 at 10:51 AMSome investors said that the sporting goods company looked like a buy on the drop. They attributed at least a portion of the weak golf and hunting sales to snowy winter weather that kept outdoorsmen inside.
Sucks that people only golf in areas where it snows. $DKS ? LMF (@mytfine) May. 20 at 08:10 AMAnd check out the technical chart on page 2.
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