[Earnings Recap]Dick’s Crashes 31%, Intuit Drops 10% — Guidance Is Killing the Rally
Tuesday’s earnings reactions had a clear theme: beating the quarter wasn’t enough if the outlook disappointed. Dick’s Sporting Goods suffered its worst drop in decades after cutting forecasts, while Intuit and Zoom both sold off after earnings beats were overshadowed by softer guidance.
$Dick's Sporting Goods(DKS)$ -30.7%
Dick’s Sporting Goods is a major U.S. retailer selling athletic footwear, apparel and sporting equipment, and it now also owns Foot Locker.
Q2 adjusted EPS came in at $3.53, below Wall Street’s roughly $3.76 estimate. Revenue reached $5.59 billion, also missing expectations near $5.64 billion. Comparable sales rose just 2.1%, while Foot Locker comps fell 3.6%.
The bigger problem was the outlook. Dick’s cut full-year adjusted EPS guidance to $11–$12, from $13.50–$14.50 previously, and lowered its sales forecast to $21.9–$22.2 billion. Management blamed weak sneaker launches, excess inventory and heavier discounting at Foot Locker. Shares plunged 30.7%, their worst one-day drop in decades.
$Intuit(INTU)$-10% after hours
Intuit makes financial software including TurboTax, QuickBooks, Credit Karma and Mailchimp.
Fiscal Q4 revenue rose 14% to $4.35 billion, above the roughly $4.27 billion consensus. Adjusted EPS of $4.03 also easily beat expectations near $3.58.
But fiscal 2027 guidance disappointed. Intuit expects revenue of $23.28–$23.51 billion, below Wall Street’s roughly $23.72 billion estimate, with growth slowing to 9%–10% from 14% last year. TurboTax growth is expected to slow sharply, while Mailchimp revenue could be roughly flat. Shares fell more than 10% in extended trading.
$Zoom(ZM)$ -4% after hours
Zoom provides video meetings and workplace communication software, while increasingly adding AI tools across its platform.
Q2 revenue reached roughly $1.28 billion, while adjusted EPS came in at $1.55, both ahead of expectations. Enterprise revenue continued to grow, helped by adoption of newer AI and workplace products.
Still, investors focused on the next quarter. Zoom guided for Q3 adjusted EPS of $1.46–$1.48, below Wall Street expectations, while revenue guidance of $1.275–$1.280 billion suggested growth remains modest. Shares dropped about 4% after hours.
Today’s discussion:
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Intuit or Zoom — which software stock would you rather own after earnings?
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Dick’s says sneaker demand is slowing. Are you seeing the same thing? Are you spending less on sneakers this year?
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