Academy Sports, Nio – 24/7 Wall St.



The three main US stock indexes closed on a lackluster Thursday. Dow Jones industrials gained 0.46% and the S&P 500 rose 0.3% while the Nasdaq slipped 0.26%. Eight of 11 sectors ended the day with small gains, led by health care (1.6%) and utilities (1.4%). Energy closed down 2.5%.

The Bureau of Labor Statistics releases its nonfarm payrolls report for August Friday morning. New jobs increased by 3,150,000, well below the 526,000 jobs added in July. Overall unemployment fell from 3.5% to 3.7%. Investors are delighted. All three major indexes traded higher shortly after Friday’s opening bell.

After markets closed on Thursday, Lululemon reported results that beat estimates both top and bottom. Revenue was up nearly 29% year-over-year, and the company issued higher guidance for the current quarter and full fiscal year. Shares traded more than 11% early Friday.

Broadcom also saw revenue and profit beats, with revenue up nearly 25% year-over-year. The chipmaker also raised its guidance for the current quarter. The title rose about 3% at the start of the session.

U.S. markets are closed Monday for the Labor Day holiday. We’ve taken a look at what to expect when Coupa Software, GitLab, and Uipath report after Tuesday’s close. Here are previews of two companies that are expected to report their results first thing Wednesday morning.

Academy Sports

Sports equipment retailer Academy Sports and Outdoors Inc. (NASDAQ: ASO) has seen its stock price drop about 2.7% in the past 12 months. Since its peak (and all-time high) in mid-November, the stock has fallen about 10.5%. The stock has gained 57% since hitting a 52-week low in late May. The company has beaten analyst estimates for earnings and revenue in every quarter since its IPO in late 2020.

Out of 12 brokerages covering the business, 11 have a strong Buy or Buy rating and the other rates the stock at Hold. At a recent price of around $43.25 per share, the upside potential based on a median price target of $53.50 is 23.7%. At the high price target of $72.00, the upside potential is around 66.5%.

Analysts expect Academy Sports to report second-quarter fiscal 2023 revenue of $1.71 billion, up 16.3% sequentially but down 4.5% from one year to the next. Adjusted earnings per share (EPS) is expected at $2.10, up 21.2% sequentially and down 10.3% year-over-year. For the full year ending next January, estimates call for EPS of $6.96, down 8.4%, and revenue of $6.59 billion, down 2.7%.

The stock trades at 6.2 times expected 2023 EPS, 5.8 times estimated 2024 earnings of $7.52 and 5.1 times estimated 2025 earnings of $8.51 per share. The stock’s 52-week range is $25.10-$51.08. Academy Sports pays an annual forward dividend of $0.30 (0.67% yield). Total shareholder return for the past year was negative 2.3%.


Chinese electric vehicle maker Nio Inc. (NYSE: NIO) has fallen about 52% against its stock price over the past 12 months. Since hitting a 52-week low in mid-May, the stock has gained 43.4%.

Nio delivered a total of 10,677 vehicles in August and delivered 71,556 for the first eight months of 2022, representing a 28.3% year-over-year increase. Continued shutdowns in some of China’s biggest cities have hammered car sales. The only reason sales are better this year is because last year was really awful. Things could get worse as the yuan weakens against the dollar.

There are 26 analyst ratings on Nio shares, and 24 are strong buy or buy ratings. At a stock price of around $18.80, the upside potential based on a midpoint price target of $29.48 is around 56.8%. At the high target of $64.92, the upside potential is 245%.

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For the first quarter of fiscal 2022, consensus estimates call for revenue of $1.42 billion, down 9.4% sequentially and up 8.4% year-over-year. Nio is expected to post an adjusted loss per share of $0.18, worse than the loss of $0.12 per share in the prior quarter and significantly worse than the loss of $0.03 per share in the prior year. For the full year, the company is expected to post a loss per share of $0.54, worse than the $0.30 loss in 2021, on sales of $8.74 billion, up about 53, 7%.

Analysts estimate that Nio will trade at a multiple of 76.1 times earnings in 2024. Until then, it is unlikely to post profits. The company’s value to sales multiple is expected to be 3.1 in 2022 and 1.8 in 2023. The stock’s 52-week range is $11.67-$44.27. The company does not pay a dividend and the total shareholder return for the past year is negative 51.9%.

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