NEW YORK – The outlook for next year from Dick’s Sporting Goods overshadowed a strong quarter and pushed its shares down sharply in early trading Tuesday.
The company, based just outside of Pittsburgh, expects a sharp profit decline in 2018 as it increases online spending in a time of tightening margins and flat sales.
“We expect earnings per share to decline by as much as 20 percent in 2018,” said CEO Edward Stack.
The company reported a 25 percent profit drop in the third quarter was $36.9 million, or 35 cents per share. Earnings, adjusted for the profit before taxes, were 30 cents per share, which topped Wall Street expectations by four cents, according to a survey by Zacks investment Research.
The sales increased by 7.4 percent to $1.94 billion, also beating Street forecasts.
For the current quarter that ends in January, Dick’s expects earnings per share of $1.12 to $1.24. Analysts polled by Zacks had forecast adjusted earnings per share of $1.10.
The company expects full-year earnings in the range of $2.92 to $3.04 per share. That is a shift from a previous range of $2.85 to $3.05 per share.
Shares of Dick’s Sporting Goods Inc. decreased by 50 percent since the beginning of the year. The stock has fallen 56 percent in the past 12 months.
Shares fell nearly 7 percent, to $24.55, at the opening bell.
Elements of this story were generated by Automated Insights using data from Zacks investment Research. Access a Zacks stock report on DKS on https://www.zacks.com/ap/DKS