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Big Five Sporting Goods (BGFV - Free Report) is a sporting goods retailer in the western US, operating 431 stores in 11 states. Their product lines include athletic shoes, apparel, accessories and a broad selection of outdoor and athletic equipment.

Excellent Results

The retailer reported much better-than-expected results for Q1. Net sales were $252.6 million, up from net sales of $234.5 million for the same quarter a year ago.Same store sales increased 7.9% during the quarter. According to the company the growth reflected “continued market share gains resulting from the closure of certain major competitors last year along with more favorable weather conditions than the prior year period.”

Adjusted operating income was $0.24 per share, beating the Zacks Consensus Estimate of $0.14 by more than 71%.

Rising Estimates

Analysts have raised their estimates significantly after blockbuster results. Zacks Consensus Estimates for the current and next fiscal year have surged to $1.20 per share and $1.35 per share respectively from $1.11 and $1.26, before the results.

The company has beaten estimates in all of last four quarters, with an average positive beat of 95%.

Big 5 Sporting Goods Corporation Price and Consensus

Big 5 Sporting Goods Corporation Price and Consensus | Big 5 Sporting Goods Corporation Quote

Returning Capital to Shareholders

The retailer continues to return a lot of capital via dividends and buybacks. Last year in November, they had announced a 20% dividend increase. This was their second dividend increase in 2016 and a 50% increase in their dividend from the beginning of the year.

In 2016, they returned over $13 million to shareholders in cash dividends and buybacks. Their current dividend yield is 4.4%.

The Bottom Line

Most retailers are going through a lot of pain thanks to the rising trend for online shopping, particularly on Amazon. But this retailer seems to be doing quite well. They seem to have also benefited from liquidation of Sports Authority and Sport Chalet.

The stock has a Zacks Rank of 1 (Strong Buy) and it looks very good on style scores with “A” for Value and Growth as well as VGM. Further, with a juicy dividend yield of 4.4% and expected EPS growth of 12%, this stock is worth a look.