Hibbett Sporting Goods, Inc. (HIBB) recently hit a new multi-year high at after reporting a solid Q1 earnings surprise of 12%. Estimates have since moved higher, providing more support and momentum for this Zacks #1 rank stock.
Company Description
Hibbet Sports, Inc. operates as a retailer of athletic and sporting goods in the United States. The company was founded in 1945 and has a market cap of $1.05 billion.
Hibbet has been a shining star in the bumpy market of the last 6 weeks, hitting a new multi-year high and lingering in elevated territoyr after reporting strong Q1 results in mid May that came in ahead of expectations.
First-Quarter Results
Revenue for the period was up 10% from last year to $203 million. Earnings also came in strong at 76 cents, 12% ahead of the Zacks Consensus Estimate, where the company has posted three consecutive earnings surprises.
The company touted its strong operating margin on its conference call, clocking in at an impressive 17% for the quarter. Same-store sales, a key retail metric, were up 6.8% after jumping 14.5% last year.
Stock Repurchase
Hibbet returned some value to its shareholders during the quarter, repurchasing 733,000 shares of its common stock for $24 million. $190 million of its $250 million buyback authorization remains.
Financial Profile
The company will also continue to benefit from its strong financial profile, with cash and equivilants of $85 million and no long-term debt.
Estimates
We saw some decent movement in estimates off the good quarter, with the current year adding 10 cents to $1.95 while the next-year estimate gained 11 cents to $2.21, a bullish 13% growth projectoin.
Valuation
In light of recent gains, HIBB trades with a forward P/E of 20X, a premium to its peer average of 14X.
12-Month Chart
On the chart, HIBB has been bucking the weak market, recently hitting a new multi-year high on the good quarter and rising estimates. The stochastic below the chart is signaling that shares are trading close to oversold territory. Take a look below.
Michael Vodicka is the Momentum Stock Strategist for Zacks.com. He is also the Editor in charge of the Zacks Momentum Trader Service.
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