Hibbet Sports Inc. (NASDAQ: HIBB) has confirmed the release date for its Q4 2022 earnings report, which will be on Friday, March 4, 2022, before the market opens.
What to look for: Amidst supply-chain issues, good momentum, a solid merchandise variety, and expanded omnichannel capability is expected to drive results in Q4 2022. the company is growing thanks to investment in stores and the internet business, and solid vendor connections.
Earnings: Stockearning’s Estimated EPS is expected to be $1.22 per share. In the last quarter, the company had EPS of $1.68, topping consensus estimates of $1.56 per share by $0.12. For FY2023, the company expects EPS of between $9.75 and $10.5 compared to consensus estimates of 10.53 per share. Historical EPS Performance indicates that in the past 12 quarters, the company has topped estimates23 times (63%), met three times (8%), and missed ten times (27%).
Revenue: In the third quarter, the company had net sales of $381.7 million, a YoY increase of 15.2%, topping estimates of $360 million. eCommerce sales were up 22.3%, accounting for 14% of total sales, while comparable-store sales were up 13%, with in-stores comps growing 11.6%.
Stock movement: HIBB shares have lost 37% since the company released its last earnings release. Interestingly, following the earnings release, the company’s shares have been DOWN 25 times in the past 47 quarters. So, the historical price reaction suggests a 53% probability of the share price going DOWN following the earnings release. According to the Stockearning algorithm, the predicted volatility on the first day is +/-6%, while the predicted volatility on the seventh day is +/-7%.
What analysts are saying: Monness Crespi analyst Jim Chartier slashed his price target on the stock from $120 to $80 and maintained a Buy rating in the shares after Hibbet preannounced a $0.75 EPS miss on an 8% sales miss in the fourth quarter attributed to supply chain disruptions contributing to inventory constraints. Management projected FY22 sales and EPS just a little below the average estimates, but Chartier believes the company's forecast for a low single-digit revenue decrease "looks somewhat optimistic to us."
Baird analyst Justin Kleber slashed his price target on the stock from $100 to $75 and maintained a Buy rating in the shares. According to the analyst although supply chain/omicron-associated issues weighed on Q4, management's approach to the market was more cautious. Kleber also notes that stock prices appear to be discounting the possibility of a more severe downsizing. BofA analyst Alexander downgraded the stock from Buy to Hold with a price target of $88.
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