Shares of sporting-goods retailer Dick's Sporting Goods (DKS -0.42%) skyrocketed on Wednesday after reporting what some analysts described as "blowout" financial results for its fiscal 2024 first quarter. As of 12:30 p.m. ET, the stock was up by 16% and had hit a new all-time high.
Sales and profits are surprisingly strong
It's been a good few years for Dick's Sporting Goods, and investors have been waiting for its results to finally cool off. But it seems that consumers are still looking for sporting goods because both transactions and average ticket price increased for Dick's during the quarter, which ended on May 4. As a result, the company's same-store sales were up 5% year over year.
According to StreetInsider, Bank of America analyst Robert Ohmes was impressed and upgraded his rating for Dick's stock to buy. But management seemed pleasantly surprised Wednesday as well. In light of the strong results for same-store sales, management raised its full-year same-store-sales guidance range from 1% to 2% growth to 2% to 3% growth.
The surge in sales also boosted earnings per share (EPS). Dick's management is now guiding for full-year EPS of $13.35 to $13.75. The top of its previous guidance range was $13.25.
The stock isn't overpriced
Based on Dick's Sporting Goods new 2024 EPS guidance, the stock is trading at around 16 to 17 times forward earnings. Add in a dividend that yields more than 2%, and Dick's stock doesn't look overpriced to me -- even at an all-time high. Considering how well the business is performing, if I were a shareholder, I'd be content to keep holding.
