Dick's Sporting Goods shares drop on weak outlook

Dick's Sporting Goods Inc. shares fell 2.3% in Tuesday premarket trading after the retailer forecast earnings below estimates. Third-quarter net income was $48.9 million, or 44 cents per share, up from $47.2 million, or 41 cents per share last year. Adjusted earnings per share were 48 cents, beating the 42-cent FactSet consensus. Revenue was $1.81 billion, up from $1.64 billion last year and beating the $1.77 billion FactSet consensus. Same-store sales jumped 5.2%, beating the 2.8% FactSet consensus. On Nov. 2, Dick's completed the purchase of intellectual property for Golfsmith International Holdings Inc., along with rights to acquire store leases and inventory for 30 stores. The company plans to retain 30 Golfsmith stores to convert to the Golf Galaxy brand. Dick's sees fourth-quarter adjusted earnings per share in the range of $1.19 to $1.31. The FactSet consensus is $1.32. The retailer sees a same-store sales increase of 3% to 6%. The FactSet consensus is for a 4.2% increase. Dick's shares are up 72.3% for the year so far while the S&P 500 Index is up 5.9% for the same period.

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