Dicks Sporting Goods credit

NEW YORK (TheStreet) - Credit Suisse lowered its price target on Dick's Sporting Goods (DKS - Get Report ) stock to $40 from $49 on Wednesday.

Before the market open on Tuesday, the retailer of sports equipment and apparel reported its 2015 third quarter earnings results, which missed analysts' expectations. The company said it expects a "more promotional environment" next quarter.

Dick's Sporting Goods' pullback could create an opportunity in the fourth quarter if the weather improves, Credit Suisse said.

"We also believe that given Dick's Sporting Goods' expected discounting, comps should be better than this guidance reflects, " the firm added. "However, past that, we continue to see EPS growth constrained to single digits in the near-term, as seen over the last three years, due to investments, gross margin pressure, and increasing competition."

The firm maintained its "neutral" rating on the stock.

Dick's Sporting Goods stock was down by 0.54% to $36.95 on heavy trading volume on Wednesday. So far today, 7.61 million shares of the retailer have traded, versus its 30-day average of 3.06 million shares.

Separately, TheStreet Ratings team rates DICKS SPORTING GOODS INC as a Hold with a ratings score of C+. TheStreet Ratings Team has this to say about their recommendation:

We rate DICKS SPORTING GOODS INC (DKS) a HOLD. The primary factors that have impacted our rating are mixed - some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its revenue growth, reasonable valuation levels and largely solid financial position with reasonable debt levels by most measures. However, as a counter to these strengths, we also find weaknesses including weak operating cash flow, a generally disappointing performance in the stock itself and unimpressive growth in net income.

Highlights from the analysis by TheStreet Ratings Team goes as follows:

  • DKS's revenue growth has slightly outpaced the industry average of 4.4%. Since the same quarter one year prior, revenues slightly increased by 7.6%. This growth in revenue does not appear to have trickled down to the company's bottom line, displaying stagnant earnings per share.
  • DKS's debt-to-equity ratio is very low at 0.20 and is currently below that of the industry average, implying that there has been very successful management of debt levels. Even though the company has a strong debt-to-equity ratio, the quick ratio of 0.13 is very weak and demonstrates a lack of ability to pay short-term obligations.
  • The change in net income from the same quarter one year ago has exceeded that of the S&P 500, but is less than that of the Specialty Retail industry average. The net income has decreased by 4.0% when compared to the same quarter one year ago, dropping from $49.21 million to $47.22 million.
  • Net operating cash flow has significantly decreased to -$87.17 million or 76.23% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
  • You can view the full analysis from the report here:

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Q&A

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What is the uniform for Dicks Sporting Goods Employees.

khakis and a green polo...wear whatever shoes you want. no sandals/flip flops obviously

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When does dicks sporting goods open on thanksgiving.

its is open almost everyday unless you live in Bergen county then iyt is not open on Sundays


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