(By Balachander) Dicks Sporting Goods Inc. (NYSE: DKS
) shares added 1.66 percent in premarket trading on Tuesday after the company raised its earnings forecast following stronger-than-expected quarterly profit.
The Coraopolis, Pennsylvania-based sporting goods retailer earned $50.1 million or $0.40 per share for the third quarter, up from $40.2 million or $0.32 per share in the year-ago quarter.
Net sales rose 11.2 percent to $1.3 billion. Same store sales gained 5.1 percent, with a 3.9 percent rise at Dick's Sporting Goods stores, a 2.3 percent growth at Golf Galaxy and a 46.7 percent jump in DKS' eCommerce business.
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Wall Street analysts, on average, expected earnings of $0.37 per share on revenue of $1.30 billion for the three months ended October 27.
Looking ahead for the fourth quarter, DKS currently sees earnings per share of around $1.03 to $1.05, compared with $1.01 to $1.05 projected earlier, while analysts expect $1.07.
For the full year, the company now expects earnings per share in the range of $2.53 to $2.55, up from prior expectations of $2.47 to $2.51, while analysts expect $2.54.
As of Oct. 27, the company operated 511 Dick's Sporting Goods stores in 44 states, and 81 Golf Galaxy stores in 30 states.
DKS declared a quarterly dividend of $0.125 per share payable in cash on Dec. 28, 2012 to stockholders of record at the close of business on Nov. 30, 2012.
DKS shares closed Monday's regular trading at $48.70. The stock has been trading in the 52-week range between $34.42 and $54.24.