Outdoor specialty retailer Sportsman's Warehouse (NASDAQ: SPWH) will be announcing earnings results this Tuesday after market close. Here’s what to expect.
Sportsman's Warehouse beat analysts’ revenue expectations last quarter, reporting revenues of $256.1 million, up 2.8% year on year. It was a very strong quarter for the company, with a beat of analysts’ EPS estimates and a solid beat of analysts’ EBITDA estimates.
Is Sportsman's Warehouse a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, the market is expecting Sportsman's Warehouse’s revenue to be flat year on year, slowing from the 1.8% increase it recorded in the same quarter last year.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business will stay the course heading into earnings. Sportsman's Warehouse rarely misses Wall Street’s revenue estimates.
Looking at Sportsman's Warehouse’s peers in the specialty retail segment, some have already reported their Q2 results, giving us a hint as to what we can expect. Dick's delivered year-on-year revenue growth of 53.2%, missing analysts’ expectations by 0.9%, and Best Buy reported revenues up 3.6%, topping estimates by 2.1%. Dick's traded down 27.5% following the results while Best Buy was also down 5.6%.
Read our full analysis of Dick’s results here and Best Buy’s results here.
Over the past year, investors have repeatedly shifted their focus from one macro narrative to another (AI disruption and AI capex spending to geopolitics, interest rates, and the broader health of the economy). While some of the specialty retail stocks have shown solid performance in this choppy environment, the group has generally underperformed, with share prices down 2.6% on average over the last month. Sportsman's Warehouse’s stock price was unchanged during the same time and is heading into earnings with an average analyst price target of $2.92 (compared to the current share price of $1.14).
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