Here is why Hibbett Sports rose on Friday morning
On an adjusted basis, earnings rose to $1.45 per share, crushing analysts’ average estimate of 45 cents.

Hibbett Sports Inc. (HIBB) announced better-than-expected earnings and sales for the third quarter with an upbeat financial outlook for the current quarter, sending its shares up more than 6 percent this morning.

The Birmingham, Alabama-based sporting goods retailer reported a profit of $25.3 million, or $1.47 per share for the three-month period ended October 31, significantly higher than 13 cents per share in the year-ago quarter. On an adjusted basis, earnings rose to $1.45 per share, crushing analysts’ average estimate of 45 cents. 

Revenue came in at $331.4 million, up 20 percent from $275.5 million in the comparable period last year. Analysts polled by FactSet were looking for revenue of $286 million.

Speaking on the results, Chief Executive Officer Mike Longo said in a statement “our business continues to operate from a position of strength despite ongoing challenges in the current business environment. Superior customer service delivered by our dedicated team members and a best-in-class omni-channel platform contributed to significant revenue and earnings growth in the quarter.” 

Same-store sales jumped 13.2 percent in the quarter, beating the 10 percent surge forecasted by analysts. E-commerce revenue accounted for 13.2 percent of the total revenue in the third quarter, as compared to 10.5 percent in the year-ago quarter. 

Looking forward, Hibbett Sports expects earnings in the range of $1.00 per share to $1.10 per share for the fourth quarter, as compared to the consensus forecast of 60 cents. Comparable sales are expected to grow between high-single digits to low-double digits in the current quarter. 

Hibbett Sports Inc. (NASDAQ: HIBB) is currently trading on heavy volume of 2 million shares, as compared to daily average volume of nearly 0.63 million shares. The stock did well this year by rising more than 71 percent on a year-to-date basis.

Disclaimer: I have no positions in any of the stocks mentioned. I wrote this article myself, and it expresses my own opinions. I have no business relationship with any company whose stock is mentioned in this article. All information should be independently verified and should not be relied upon for purposes of transacting securities or other investments. See terms for more info.

Published On
2020-11-20 11:39

About the Author
Staff or Guest writer for The Dog of Wall Street.

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