Dicks Sporting Goods (DKS) Stock: Exploding on Earnings and Dividend

Dicks Sporting Goods Inc (NYSE: DKS)

Dicks Sporting Goods is having an incredible trading session today, and for good reason. The company recently reported its earnings for the second quarter and announced the beginning of a dividend. Today, we’ll talk about the news, how the stock reacted to the news, and what we can expect to see from DKS ahead.

DKS Reports Strong Earnings

As mentioned above, Dicks Sporting Goods is having a strong day in the market today after reporting strong results for the second quarter and dividend-related news. Here’s what we saw…

  • Earnings Per Share – When it comes to earnings per share, DKS did incredibly well during the second quarter. During the quarter, analysts expected that the company would generate earnings of $0.77 per share. However, the company actually reported earnings in the amount of $0.82 per share; blowing away expectations.
  • Revenue – The second quarter also proved to be a great period for DKS in terms of top-line revenue. During the quarter, the company was expected to generate revenue in the amount of $1.88 billion. However, the company actually reported revenue in the amount of $1.97 billion. Not only did this beat expectations, it proved growth of 8% over the same quarter last year.
  • Same Store Sales – During the quarter, same store sales rose by 2.8%. However, the big winner for the company was e-commerse, which saw year over year growth in the amount of 8.5%.
  • Dividend News – Finally, Dicks Sporting goods has declared a quarterly dividend. The new dividend offered is $0.15125 per share per quarter, or $0.605 on an annualized basis. The dividend will be payed on September 30, 2016 to all stockholders of record on September 9th, 2016.

How The Stock Reacted To The News

As investors, one of the first lessons that we learn is that it’s important to watch the news. After all, the news moves the market. The news that was released today with regard to DKS was overwhelmingly positive. After all, any time earnings come in ahead of expectations, investors are going to be excited. As a result, we’re seeing strong gains in the value of the stock today. Currently (3:21), the stock is trading at $59.10 per share after a gain of $4.21 per share or 7.67% thus far today.

What We Can Expect To See Moving Forward

Moving forward, I have an overwhelmingly bullish opinion of what we can expect to see from Dicks Sporting Goods stock. First and foremost, the strong earnings results during a tough quarter show that the company is doing very well when it comes to the execution of plans designed to lead to growth. We’re seeing strong growth in same store sales and even stronger growth in the overwhelmingly competitive e-commerce space. All in all, I’m expecting to see strong gains out of DKS ahead.

What Do You Think?

Where do you think DKS is headed moving forward? Join the discussion in the comments below!

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