Goldman Sachs Raises Estimates For Dick's Sporting Goods

In a report published by Goldman Sachs, Dick's Sporting Goods' (NYSE: DKS) options abound in online, merchandising and capital, and it's raising the estimates.

Goldman Sachs said that that a combination of field work, competitor and vendor results, and financial analysis increase its comfort in DKS' earnings trajectory, both for 4Q2010, to be reported on March 8, and for the full year. “On the strategic front, we expect e-commerce momentum to build as the firm's in-store ecommerce capabilities improve POS-based sales to kiosk-based sales. We expect the company to drive incremental sales at the high end and to extend its reach in seasonal categories to year around. We expect ongoing enhancements to dedicated branded shops, the shared services shoe platform, and private label penetration. We see potential for return of capital to shareholders, as rising margins converge with the slower store growth rate of recent years. The company is likely to let cash build, given high leverage, but could repurchase stock or ultimately issue a dividend.”

Fortegra Financial closed yesterday at $38.00.