Why Hibbet Sports Stock Reversed Course Today
Sports-related apparel retailer Hibbett (NASDAQ: HIBB) reported quarterly earnings this morning that beat estimates and raised full-year guidance, and the initial reaction was strongly positive. The stock popped more than 6% in pre-market trading. So investors may be wondering why shares were trading 11.5% below Thursday's closing price, as of 2 p.m. EDT.
Hibbett blew past analyst earnings estimates with net income of $2.86 per diluted share compared to a consensus estimate of $1.44 per share. Sales also beat forecasts, and the company revised its full fiscal-year earnings estimate to a range of $11.00 to $11.50 compared to the prior guidance of $8.50 to $9.00 per diluted share. That's all good news, but it seems investors feel that it was all already priced in. Hibbett stock had already jumped almost 16% in just the first four days of this week. Today's drop doesn't quite reverse all of those gains.
Source Fool.com
