Academy Sports and Outdoors, Inc. (ASO) Exceeds Fourth Quarter Earnings and Revenue Estimates


Academy Sports and Outdoors, Inc. (ASO) posted quarterly earnings of $1.61 per share, beating Zacks consensus estimate of $1.36 per share. That compares to earnings of $1.09 per share a year ago. These figures are adjusted for non-recurring items.

This quarterly report represents a profit surprise of 18.38%. A quarter ago, this company was expected to post earnings of $1.16 per share when it actually produced earnings of $1.75, delivering a surprise of 50.86%.

In the past four quarters, the company has exceeded consensus EPS estimates four times.

Academy Sports and Outdoors, Inc., which is part of the Zacks recreation and leisure products industry, reported revenue of $1.81 billion for the quarter ended January 2022, beating Zacks’ consensus estimate 2.05%. That compares to revenues of $1.6 billion a year ago. The company has exceeded consensus revenue estimates four times in the past four quarters.

The sustainability of the immediate stock price movement based on recently released numbers and future earnings forecasts will primarily depend on management’s comments on the earnings call.

Shares of Academy Sports and Outdoors, Inc. are down about 17.6% year-to-date compared to the -4% decline in the S&P 500.

What’s next for Academy Sports and Outdoors, Inc.

While Academy Sports and Outdoors, Inc. has underperformed the market so far this year, the question on investors’ minds is: what’s next for the stock?

There are no easy answers to this key question, but one reliable metric that can help investors answer it is the company’s earnings outlook. This includes not only the current consensus earnings expectations for the upcoming quarter(s), but also how those expectations have changed recently.

Empirical research shows a strong correlation between short-term stock movements and trends in earnings estimate revisions. Investors can track these revisions on their own or rely on a proven scoring tool like Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.

Prior to this earnings release, the trend in estimate revisions for Academy Sports and Outdoors, Inc. Mixed. While the magnitude and direction of estimate revisions may change following the release of the company’s earnings report, the current situation translates into a No. 3 (hold) Zacks ranking for the stock. Thus, the shares should move in line with the market in the near future. You can see the full list of today’s Zacks #1 Rank (Strong Buy) stocks here.

It will be interesting to see how the estimates for the next few quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $1.29 on $1.43 billion in revenue for the upcoming quarter and $6.28 on $6.68 billion in revenue for the current fiscal year.

Investors should be aware that the outlook for the sector can also have a significant impact on stock performance. In terms of Zacks industry rankings, Hobby and Hobby Products currently sits in the bottom 37% of Zacks more than 250 industries. Our research shows that the top 50% of industries ranked by Zacks outperform the bottom 50% by a factor of more than 2 to 1.

Another stock in the same sector, Pool Corp. (POOL), has not yet released results for the quarter ended March 2022.

This pool supplies distributor is expected to post quarterly earnings of $3.04 per share in its next report, representing a 12-month change of +25.6%. The consensus EPS estimate for the quarter remained unchanged for the past 30 days.

Pool Corp.’s revenues are expected to be $1.24 billion, up 17.4% from the prior year quarter.

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