Why Dick's Sporting Goods Shares Are Diving Today
Portfolio Pulse from Lekha Gupta
Dick's Sporting Goods Inc (NYSE:DKS) shares dropped over 19% following a Q2 FY23 earnings miss. Q2 sales grew 3.6% Y/Y to $3.22 billion, missing the analyst consensus of $3.23 billion. The company also reported a contraction in gross profit margin and operating margin, and a 32.3% Y/Y fall in operating income. Adjusted EPS of $2.82, down 23% Y/Y, missed the analyst consensus of $3.81. The company reduced its FY23 adjusted EPS outlook and cut positions at its customer support center to streamline costs.
August 22, 2023 | 11:48 am
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Dick's Sporting Goods reported a Q2 earnings miss, leading to a drop in its share price. The company also reduced its FY23 EPS outlook and cut positions to streamline costs.
The company's Q2 earnings miss, reduced FY23 EPS outlook, and job cuts are likely to negatively impact investor sentiment and put downward pressure on the stock price in the short term.
CONFIDENCE 95
IMPORTANCE 90
RELEVANCE 100