What To Look For From SPWH

Outdoor specialty retailer Sportsman’s Warehouse (NASDAQ:SPWH) will be reporting earnings this Thursday after the bell. Here’s what to look for.

Sportsman’s Warehouse beat analysts’ revenue expectations by 0.8% last quarter, reporting revenues of $293.9 million, up 1.8% year on year. It was a very strong quarter for the company, with an impressive beat of analysts’ EBITDA estimates and full-year EBITDA guidance exceeding analysts’ expectations.

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, analysts are expecting Sportsman’s Warehouse’s revenue to grow 2.1% year on year to $331.1 million, a reversal from the 4.8% decrease it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.08 per share.

Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Sportsman’s Warehouse has a history of exceeding Wall Street’s expectations, beating revenue estimates every single time since going public by 2.7% on average.

Looking at Sportsman’s Warehouse’s peers in the specialty retail segment, some have already reported their Q3 results, giving us a hint as to what we can expect. Dick’s delivered year-on-year revenue growth of 36.3%, missing analysts’ expectations by 10.2%, and Sally Beauty reported revenues up 1.3%, topping estimates by 1.6%. Dick’s stock price was unchanged after the resultswhile Sally Beauty was down 3.4%.

Read our full analysis of Dick’s results here and Sally Beauty’s results here.

There has been positive sentiment among investors in the specialty retail segment, with share prices up 5.2% on average over the last month. Sportsman’s Warehouse is down 4.6% during the same time and is heading into earnings with an average analyst price target of $3.85 (compared to the current share price of $2.31).

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