Dick's Sporting Goods profit down, beats street

Dick's Sporting Goods Inc. on Thursday reported a 2.5 percent slip in its second-quarter profit, but results beat Wall Street estimates and the company raised its full-year outlook, sending shares soaring.

The retailer's shares advanced $2.66, or 13 percent, to $22.93 in morning trading.

Earnings fell to $38.9 million, or 33 cents per share, compared with $40 million, or 34 cents per share, a year earlier. Analysts polled by Thomson Reuters estimated a profit of 31 cents per share, on average.

Revenue climbed about 4 percent to $1.13 billion, from $1.09 billion last year. Analysts forecast an average revenue of $1.12 billion. Sales were boosted by the opening of new stores and the addition of e-commerce sales, partially offset by a 4.1 percent decrease in comparable store sales. The decline in same-store sales consisted of a 3.2 percent decrease in Dick's Sporting Goods stores and an 11.1 percent decline in the Golf Galaxy stores.

The company raised its annual GAAP profit estimate to between 97 cents and $1.02 per share, up from a previous estimate between 85 cents and 97 cents per share, provided in May. Its non-GAAP earnings forecast was increased to between $1.02 and $1.07 per share, excluding merger and integration costs. This compares with an earlier prediction between 88 cents and $1 per share. Analysts, who typically exclude one-time items, expect a full-year non-GAAP profit of 99 cents per share.