Academy Sports and Outdoors, Inc. Q1 Fiscal 2024 Earnings Preview
- Academy Sports and Outdoors, Inc. is set to announce its Q1 fiscal 2024 earnings on June 11, highlighting the importance of this report in assessing the company's market position and financial health.
- Wall Street anticipates an EPS of $1.24 and revenue of $1.38 billion, reflecting potential market challenges and a slight downturn from the previous year.
- Despite economic pressures, ASO's focus on product innovation and expansion efforts showcases its proactive approach to maintaining competitiveness and attracting a broader customer base.
Academy Sports and Outdoors, Inc. (NASDAQ:ASO) is gearing up to share its financial performance for the first quarter of fiscal 2024 on June 11, before the market opens. This announcement is highly anticipated by investors and analysts alike, as it provides a snapshot of the company's health and its operational success during the quarter. ASO operates in the competitive sporting goods and outdoor recreation markets, offering a wide range of products, from apparel to equipment. The company's upcoming earnings report is particularly significant as it competes with other major players in the industry, aiming to capture a larger market share and enhance its financial standing.
Wall Street's expectations for ASO's quarterly earnings are set at an earnings per share (EPS) of $1.24, with projected revenue of approximately $1.38 billion. These figures suggest a slight downturn from the previous year, indicating potential challenges the company has faced in the market. According to Zacks Equity Research, the anticipated decline in ASO's fiscal first-quarter results can be attributed to a decrease in discretionary spending among middle and low-income consumers and underperformance in certain categories, notably outdoor. These factors are expected to negatively impact the company's performance, highlighting the broader economic pressures that can influence consumer behavior and spending.
Despite these challenges, ASO has not remained passive in the face of potential downturns. The company has been proactive in driving demand through product innovation and expansion efforts. These strategies are crucial for maintaining competitiveness and potentially offsetting some of the negative impacts of decreased consumer spending and category underperformance. By focusing on innovation and expanding its product offerings, ASO aims to attract a broader customer base and stimulate sales, even in a challenging economic environment.
The stability of ASO's earnings estimates over the last 30 days is noteworthy. Despite the projected decrease in earnings and revenue, the consensus EPS estimate has remained unchanged, suggesting that analysts believe the company's financial performance may not deviate significantly from their predictions. This stability in earnings estimates is an important indicator for investors, as it reflects analysts' confidence in their forecasts and suggests that any potential surprises in the earnings report could have a significant impact on the stock's short-term price movement.
In preparation for the earnings announcement, ASO has also scheduled a live conference call to discuss the financial outcomes. This provides an opportunity for investors and analysts to gain deeper insights into the company's performance, strategies, and outlook. With a P/E ratio of approximately 7.87 and a P/S ratio of about 0.66, ASO's valuation metrics indicate that its shares are trading at a relatively low multiple of its earnings and sales, respectively. These financial ratios, along with the company's moderate debt-to-equity ratio and healthy current ratio, offer a comprehensive view of ASO's financial health and operational efficiency, setting the stage for its upcoming earnings report.
| Symbol | Price | %chg |
|---|---|---|
| BELI.JK | 450 | 0 |
| MAPA.JK | 1020 | -0.49 |
| BUKA.JK | 120 | 2.5 |
| ACES.JK | 720 | 0.69 |
Academy Sports and Outdoors, Inc. (NASDAQ: ASO) Faces Earnings Shortfall but Plans Expansion
- Earnings per share (EPS) of $0.916 missed the expected $1.3, marking a consistent trend of not meeting consensus EPS estimates.
- Reported revenue of approximately $1.34 billion, slightly below the estimated $1.38 billion, indicating a 3.9% decline from the previous year.
- The company announced a $700 million share repurchase program and plans to open 20 to 25 new stores in fiscal 2025, aiming for growth despite current financial challenges.
Academy Sports and Outdoors, Inc. (NASDAQ: ASO) is a well-known retailer in the leisure and recreation products industry. The company offers a wide range of sporting goods and outdoor equipment. Despite its strong market presence, ASO faces competition from other major retailers in the sector.
On December 10, 2024, ASO reported earnings per share (EPS) of $0.916, which was below the expected $1.3. This shortfall is part of a broader trend, as highlighted by Zacks, where the company has consistently missed consensus EPS estimates over the past four quarters. The reported EPS also marks a decline from the $1.38 per share achieved in the same quarter last year.
ASO's revenue for the quarter was approximately $1.34 billion, slightly under the estimated $1.38 billion. This represents a 3.9% decline from the previous year, as noted by Zacks. The revenue also missed the Zacks Consensus Estimate of $1.37 billion by 2.20%. This shortfall in revenue is significant for investors as it impacts the company's perceived growth potential.
Despite these challenges, ASO has made strategic moves to bolster its future performance. The company authorized a $700 million share repurchase program and plans to open 20 to 25 new stores in fiscal 2025. This follows the successful opening of 16 stores in fiscal 2024, including expansion into Ohio, which aligns with its growth strategy.
Financially, ASO maintains a price-to-earnings (P/E) ratio of approximately 8.11, indicating a relatively low valuation compared to its earnings. The company's price-to-sales ratio is about 0.61, suggesting that the market values the company at 61 cents for every dollar of sales. With a debt-to-equity ratio of about 0.67, ASO shows a moderate level of debt relative to equity, reflecting a balanced financial structure.
Academy Sports and Outdoors, Inc. (NASDAQ:ASO) Earnings Preview and Financial Health Analysis
- Academy Sports and Outdoors, Inc. (NASDAQ:ASO) is expected to report a decline in earnings and revenues for the quarter ending October 2024, according to Zacks Investment Research.
- The company boasts a price-to-earnings (P/E) ratio of approximately 7.29 and a price-to-sales ratio of about 0.57, indicating a potentially undervalued stock.
- ASO's financial health is supported by a debt-to-equity ratio of 0.31 and a current ratio of 1.66, suggesting a conservative use of debt and healthy liquidity levels.
Academy Sports and Outdoors, Inc. (NASDAQ:ASO) is a well-known retailer specializing in sporting goods and outdoor recreational products. As a key player in the retail industry, ASO competes with other major retailers like Dick's Sporting Goods and Bass Pro Shops. The company is set to release its quarterly earnings on December 10, 2024, with Wall Street estimating an earnings per share (EPS) of $1.30 and projected revenue of approximately $1.38 billion.
However, as highlighted by Zacks Investment Research, ASO is anticipated to report a decline in earnings and lower revenues for the quarter ending October 2024. This potential shortfall could influence the stock's movement, depending on whether the actual results exceed or fall short of these estimates. The market's consensus outlook is crucial for evaluating the company's earnings potential, but the actual results compared to these expectations will significantly impact ASO's near-term stock price.
ASO's financial metrics provide insight into its current valuation. The company has a price-to-earnings (P/E) ratio of approximately 7.29, indicating a relatively low valuation compared to its earnings. This suggests that the market may be undervaluing ASO's earnings potential. Additionally, the price-to-sales ratio of about 0.57 implies that the market values its sales modestly, which could be a point of concern if revenues continue to decline.
The enterprise value to sales ratio of 0.79 shows that ASO's enterprise value is slightly higher than its total sales, while the enterprise value to operating cash flow ratio of 8.31 reflects the company's ability to generate cash flow relative to its enterprise value. These metrics suggest that ASO is managing its resources effectively, despite the anticipated decline in earnings and revenues.
ASO's financial health is further supported by its debt-to-equity ratio of 0.31, indicating a conservative use of debt in its capital structure. The current ratio of 1.66 suggests that ASO has a healthy level of liquidity to cover its short-term liabilities. These factors, along with an earnings yield of 13.72%, highlight ASO's potential for return on investment for shareholders, even amidst the challenges of declining earnings and revenues.
UBS Downgrades Academy Sports to Neutral
- UBS downgraded Academy Sports to Neutral from Buy, indicating a cautious outlook on the company's future performance.
- Despite facing macroeconomic pressures, ASO has maintained its FY2024 guidance, showing confidence in its resilience and long-term growth strategy.
- The company's strategic expansion efforts and the expected recovery in demand highlight its potential for future success, despite the recent stock price volatility.
On Wednesday, June 12, 2024, UBS downgraded Academy Sports (NASDAQ:ASO) to Neutral from its previous grade of Buy. This change reflects a shift in the financial institution's view of the company's future performance. At the time of this announcement, ASO's stock was trading at $51.69. This downgrade is significant as it suggests a more cautious outlook on the company's stock by one of the leading financial services firms.
Academy Sports and Outdoors, known for its wide range of sporting goods and outdoor equipment, has been navigating through a challenging economic landscape. The company's recent first-quarter results shed light on the macroeconomic pressures that have been influencing consumer behavior. Despite these challenges, ASO has maintained its FY2024 guidance, indicating confidence in its ability to perform well under the current conditions. This resilience is noteworthy, especially considering the slight miss in Q1 expectations.
The company's strategy to expand by opening new retail locations is a key factor in its long-term growth plan. This expansion, along with the expected recovery in demand, suggests that Academy Sports and Outdoors is positioning itself for future success. The stock's current trading price of $51.69, after a decrease of 3.24%, reflects the market's reaction to both the downgrade and the company's financial performance. With a market capitalization of approximately $3.81 billion and a trading volume of about 6.28 million shares, ASO remains a significant player in the retail sector.
Despite the downgrade by UBS, Academy Sports and Outdoors' unchanged FY2024 guidance and strategic expansion efforts highlight the company's potential for long-term revenue growth. The stock's performance, with a year's high of $75.73 and a low of $42.825, demonstrates the volatility and the opportunities within the retail industry. Investors and market watchers will likely keep a close eye on ASO as it navigates through the macroeconomic challenges and strives for growth in the competitive retail landscape.
Academy Sports and Outdoors’ Upcoming Q2 Earnings Preview
Wedbush analysts provided their outlook on Academy Sports and Outdoors, Inc. (NASDAQ:ASO) ahead of the upcoming Q2 earnings, scheduled to be released on September 7.
The analyst see potential for modest beat-and-raise despite macro headwinds. While the company is facing tough sales comparisons that were boosted by 2021 stimulus, the analysts believe resilient category performance, a good start to the back-to-school season and outsized exposure to the Texas market drive modest upside to their 6% comp sales decline estimate (vs. Street’s 5.5% decline).
According to the analysts, the company’s comps historically move well with the broader sporting goods, hobby instrument and book store category retail sales reported by the Census Bureau, which increased 2% year-over-year in Q2/22. The analysts think that these positives outweigh a moderation in the company’s store traffic year-over-year growth and its outsized exposure to the mass market customer. The analyst maintained their outperform rating and $50 price target on the company’s shares.
