Academy Sports and Outdoors Prepares for Q3 Earnings Report
Academy Sports and Outdoors, Inc. ASO is set to announce its third-quarter fiscal 2024 results on December 10. In the previous quarter, the company’s earnings met the expectations set by Zacks Consensus.
Q3 Earnings and Revenue Projections
Analysts predict an earnings estimate of $1.31 per share for the upcoming report, marking a 5.1% decrease from $1.38 in the same quarter last year.
Moreover, revenue projections stand at $1.37 billion, reflecting a slight decline of 1.7% compared to the previous year.
Stay informed with Zacks’ Earnings Calendar.
Challenges Influencing ASO’s Q3 Performance
The macroeconomic landscape has posed challenges for Academy Sports, particularly impacting consumer spending. A reduction in discretionary purchases by lower and middle-income households may have adversely affected the company.
Furthermore, disappointing comparisons to previous performances likely contributed to decreased revenue. The consensus expects a decline of 3.6% in comparable store sales, with revenue targets for Apparel, Outdoors, Footwear, and Sports and Recreational items anticipated at $374.7 million, $424 million, $316.6 million, and $253.5 million. This represents year-over-year changes of +0.2%, -3.8%, +2.5%, and -5.1%, respectively.
In contrast, ASO’s commitment to innovation and expansion may mitigate some negative impacts. The company’s focus on improving omnichannel strategies and making digital enhancements, coupled with a stronger inventory strategy for seasonal products, suggests that there may still be positive signals. Additionally, initiatives like My Academy Rewards and strategic partnerships are likely to engage customers and drive sales.
ASO’s Earnings Outlook According to Zacks
The Zacks model does not strongly indicate an earnings surprise for Academy Sports and Outdoors. A positive Earnings ESP, combined with a Zacks Rank of #1 (Strong Buy), #2 (Buy), or #3 (Hold), typically signals a higher likelihood of an earnings beat—qualities ASO currently lacks. Presently, the company has an Earnings ESP of -6.25% and a Zacks Rank of #4 (Sell).
Recent Trends in ASO’s Stock Price and Earnings Surprises
Academy Sports and Outdoors, Inc. price-eps-surprise | Academy Sports and Outdoors, Inc. Quote
Stocks with Promising Earnings Potential
Here are three other stocks that our model indicates may achieve earnings beats this earnings season.
Boyd Gaming Corporation BYD has an Earnings ESP of +10.81% alongside a Zacks Rank of 3. Its earnings are expected to rise by 6.6% in the upcoming report, having exceeded expectations in three of the last four quarters with an average surprise of 6.9%.
Carnival Corporation & plc CCL boasts an Earnings ESP of +13.29% and currently holds a Zacks Rank of 1. The company has consistently outperformed expectations in the last four quarters, averaging an earnings surprise of 318.1%.
Norwegian Cruise Line Holdings Ltd. NCLH features an Earnings ESP of +10.00% with a Zacks Rank of 2. The company’s earnings are projected to surge by 134.3%, continuing a trend of three out of four quarters meeting or surpassing expectations with an average surprise of 4.2%.
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Read the full article on Zacks.com here.
The views and opinions expressed herein are the author’s and do not necessarily reflect those of Nasdaq, Inc.
