UBS Downgrades Academy Sports to Neutral

Academy Sports and Outdoors (NASDAQ:ASO) delivered Q1 results that missed expectations and narrowed its full-year outlook in response to ongoing economic headwinds.

The retailer reported adjusted earnings per share of $0.76 for the quarter, falling short of the $0.90 anticipated by analysts. Revenue declined 0.9% year-over-year to $1.35 billion, coming in just under the $1.37 billion consensus estimate. Comparable store sales dropped 3.7%, reflecting continued softness in consumer demand.

In light of these challenges, Academy widened its full-year comparable sales guidance to a range of -4% to +1%, compared to the earlier -2% to +1% outlook. The company also trimmed the lower end of its earnings forecast, now expecting fiscal 2025 adjusted EPS between $5.45 and $6.25, slightly lowering the midpoint relative to prior projections.

Total net sales are now forecast between $5.97 billion and $6.265 billion, down from the previous range of $6.09 billion to $6.265 billion.

Academy Sports and Outdoors, Inc. (NASDAQ: ASO) is a prominent retailer specializing in sporting goods and outdoor recreational products. The company operates numerous stores across the United States, offering a wide range of products from sports equipment to outdoor gear. ASO competes with other major retailers like Dick's Sporting Goods and Bass Pro Shops.

On June 10, 2025, ASO reported earnings per share (EPS) of $0.76, which was below the expected $0.91. This shortfall in earnings reflects a challenging quarter for the company. Despite this, ASO's revenue of approximately $1.35 billion was only slightly below the estimated $1.37 billion, indicating a relatively stable revenue stream.

The company's first-quarter results showed a slight sales decline of 0.9%, with comparable sales dropping by 3.7%. However, eCommerce sales increased by 10.2%, highlighting a shift towards online shopping. ASO also opened five new stores, contributing positively to sales in low single digits, which may help offset the decline in comparable sales.

ASO's financial metrics reveal a mixed picture. The company has a price-to-earnings (P/E) ratio of 7.45, suggesting a low valuation compared to its earnings. Its price-to-sales ratio of 0.51 indicates that the market values the company at just over half of its annual sales. The enterprise value to sales ratio of 0.76 shows that ASO is valued at less than its total sales when considering its debt and cash.

ASO's strategic initiatives, such as the launch of the Jordan Brand, mark significant progress for the company. CEO Steve Lawrence emphasized this as the biggest brand introduction in the company's history. Additionally, ASO returned $108 million to shareholders through share buybacks and dividends, demonstrating a commitment to shareholder value. The company's current ratio of 1.78 suggests it has a good level of liquidity to cover short-term liabilities.

Academy Sports and Outdoors, Inc. (NASDAQ:ASO) is a well-known retailer specializing in sporting goods and outdoor recreational products. The company operates numerous stores across the United States, offering a wide range of products from sports equipment to outdoor gear. ASO competes with other major retailers like Dick's Sporting Goods and Bass Pro Shops in the sporting goods industry.

ASO is set to release its quarterly earnings on Tuesday, June 10, 2025. Wall Street estimates the earnings per share (EPS) to be $0.91, which aligns with the anticipated EPS for the quarter ending April 2025. This figure reflects a 15.7% decline compared to the previous year, as highlighted by Zacks Investment Research. Despite this decline, the revenue is projected to be approximately $1.37 billion, marking a slight increase of 0.4% from the same quarter last year.

The stability in EPS estimates over the past month indicates that analysts have maintained their initial forecasts. This stability is crucial as it often influences investor behavior and can impact the short-term price performance of the stock. Zacks Investment Research emphasizes the importance of considering any revisions to earnings projections before a company's earnings release, as these revisions can serve as a significant indicator of potential stock movements.

ASO's financial metrics provide further insight into its market valuation. The company has a price-to-earnings (P/E) ratio of approximately 7.10, indicating a relatively low valuation compared to its earnings. The price-to-sales ratio stands at 0.48, suggesting that the market values its sales at less than half of its current market price. Additionally, the enterprise value to sales ratio is 0.73, reflecting the company's total valuation in relation to its sales.

ASO's enterprise value to operating cash flow ratio is 8.24, which provides insight into how the market values the company's cash-generating ability. The earnings yield is 14.09%, offering a substantial return on investment relative to its share price. The debt-to-equity ratio is 0.89, indicating a moderate level of debt compared to its equity. Lastly, the current ratio is 1.78, suggesting that ASO has a strong ability to cover its short-term liabilities with its short-term assets.

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. ASO competes with other major retailers in the sector, striving to maintain its market position through strategic initiatives and financial performance.

On March 20, 2025, ASO reported earnings per share (EPS) of $1.96, surpassing the Zacks Consensus Estimate of $1.82. This earnings surprise of 7.69% highlights the company's ability to outperform market expectations. However, it's important to note that this figure represents a decrease from the $2.21 EPS reported in the same quarter the previous year.

ASO's revenue for the quarter was approximately $1.68 billion, slightly exceeding the estimated $1.675 billion. This revenue figure, while above expectations, marks a decline from the $1.79 billion reported a year ago. Despite this, the company has shown resilience in a challenging macroeconomic environment, as highlighted by its 3% decline in fourth-quarter comparable sales, which was an improvement from the previous quarter.

The company has taken strategic steps to drive growth, such as launching the Jordan Brand in 145 stores and online. Additionally, ASO increased its quarterly dividend by 18% per share, demonstrating confidence in its financial stability. The company's financial metrics, including a price-to-earnings (P/E) ratio of 7.38 and a price-to-sales ratio of 0.55, suggest a relatively low valuation compared to its earnings and sales.

ASO's financial health is further supported by an enterprise value to sales ratio of 0.71 and an enterprise value to operating cash flow ratio of 6.92. These figures indicate the company's ability to generate cash relative to its enterprise value. With a debt-to-equity ratio of 0.67 and a current ratio of 1.57, ASO maintains a moderate level of debt and a good level of liquidity to cover its short-term liabilities.

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. ASO competes with other major retailers in the sector, striving to maintain its market position through strategic initiatives and financial performance.

On March 20, 2025, ASO reported earnings per share (EPS) of $1.96, surpassing the Zacks Consensus Estimate of $1.82. This earnings surprise of 7.69% highlights the company's ability to outperform market expectations. However, it's important to note that this figure represents a decrease from the $2.21 EPS reported in the same quarter the previous year.

ASO's revenue for the quarter was approximately $1.68 billion, slightly exceeding the estimated $1.675 billion. This revenue figure, while above expectations, marks a decline from the $1.79 billion reported a year ago. Despite this, the company has shown resilience in a challenging macroeconomic environment, as highlighted by its 3% decline in fourth-quarter comparable sales, which was an improvement from the previous quarter.

The company has taken strategic steps to drive growth, such as launching the Jordan Brand in 145 stores and online. Additionally, ASO increased its quarterly dividend by 18% per share, demonstrating confidence in its financial stability. The company's financial metrics, including a price-to-earnings (P/E) ratio of 7.38 and a price-to-sales ratio of 0.55, suggest a relatively low valuation compared to its earnings and sales.

ASO's financial health is further supported by an enterprise value to sales ratio of 0.71 and an enterprise value to operating cash flow ratio of 6.92. These figures indicate the company's ability to generate cash relative to its enterprise value. With a debt-to-equity ratio of 0.67 and a current ratio of 1.57, ASO maintains a moderate level of debt and a good level of liquidity to cover its short-term liabilities.

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) 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.