Big 5 Sporting Goods 3rd-qtr profit rises 80 percent on higher sales, better inventory control
Associated Press
11/03/09 7:01 PM EST
EL SEGUNDO, CALIF. — Big 5 Sporting Goods Corp. said Tuesday its profit rose 80 percent in the third quarter as sales climbed and it better managed inventory.
The company's stock jumped 6 percent in after-hours trading on the report.
The sporting goods retailer, based in El Segundo, Calif., earned $8 million, or 37 cents per share, in the quarter that ended Sept. 27. That is up from the $4.5 million, or 21 cents per share, it earned a year earlier.
The latest quarterly profit beats a 33-cent-per-share prediction of analysts polled by Thomson Reuters.
Revenue rose 4 percent to $231.6 million from $223.2 million, in line with analysts' average estimate.
The company said sales at stores open at least a year increased 1.6 percent during the quarter. And CEO Steven G. Miller said sales trends have continued to improve so far in the fourth quarter.
Big 5 said it expects fourth-quarter profit to be in a range of 28 cents to 38 cents per share. Analysts expect 32 cents per share in profit in the current quarter.
The company also declared a 5 cent quarterly dividend to be paid Dec. 15 to shareholders of record as of Dec. 1.
Shares of Big 5 rose 93 cents, or 6 percent, to $16.43 in after-hours trading after closing Tuesday at $15.50, up 13 cents from a day earlier.
