Dick's Sporting Goods Shocks Investors — 4 Analysts Slash Forecasts
Portfolio Pulse from Priya Nigam
Shares of Dick's Sporting Goods Inc (NYSE:DKS) fell after the company cut its guidance. Analysts from Stifel, Telsey Advisory Group, Morgan Stanley, and Oppenheimer have reduced their price targets for DKS. The earnings miss in Q2 and FY23 guidance reduction are due to inventory shrink and actions to align outdoor apparel. The company's EBIT margins are expected to normalize at a higher level post-COVID, at 10.8% in '25e.
August 23, 2023 | 3:38 pm
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Dick's Sporting Goods shares fell after the company cut its guidance. Analysts have reduced their price targets due to inventory shrink and actions to align outdoor apparel. However, the company's EBIT margins are expected to normalize at a higher level post-COVID.
The company's shares fell due to the cut in guidance, which is a negative signal to investors. The reduction in price targets by analysts further adds to the negative sentiment. However, the expectation of EBIT margins normalizing at a higher level post-COVID could provide some positive outlook in the longer term.
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