Dick's Sporting Goods shares surge as retailer raises earnings forecast
FBN's Lauren Simonetti on Dick's Sporting Goods' new policies on gun sales.
May 30 (Reuters) - Dick's Sporting Goods Inc's shares jumped 24 percent on Wednesday, after the retailer of outdoor products and guns reported better-than-expected first-quarter results and raised its yearly profit target.
The stock, trading at $37.91 before the bell, was on track to hit its highest in nearly 10 months.
Dick's reported earnings of 59 cents per share in the three months ended May 5, easily topping analysts' average estimate of 45 cents, according to Thomson Reuters I/B/E/S.
The Pittsburgh-based chain said it focused on selling off older inventory during the quarter and ran fewer promotions, which helped boost earnings.
Its quarterly sales of $1.91 billion exceeded analysts' estimates of $1.88 billion.
Dick's now expects full-year earnings of $2.92 to $3.12 per share compared with an earlier forecast of $2.80 to $3.00.
The results come more than three months after Dick's said it would not sell guns to people under the age of 21 and would stop selling assault rifles and high-capacity magazines, following a deadly shooting at a Florida high school.
(Reporting by Aishwarya Venugopal in Bengaluru; Editing by Sai Sachin Ravikumar)