Insight into Academy Sports and Outdoors Q2 Earnings Performance

Author: Hannah Lewis Updated: 09-10-2024 02:42 PM

Academy Sports and Outdoors, Inc. Earnings Overview

Academy Sports and Outdoors, Inc. ASO announced quarterly earnings of $2.03 per share, meeting expectations that had been outlined by analysts. This figure shows a slight decrease from the previous year, where earnings stood at $2.09 per share. It’s worth noting that these numbers are adjusted to account for one-time items.

Previously, the earnings forecast for this company was set at $1.23 per share, but it fell short with actual earnings of $1.08, culminating in a surprise of -12.20% from what was anticipated.

In the last four quarters, Academy Sports and Outdoors has struggled to exceed the consensus expectations for earnings per share (EPS).

Revenue Analysis for the Quarter

During the quarter concluding in July 2024, Academy Sports and Outdoors recorded revenues totaling $1.55 billion. However, this figure was below the market expectations by 1.43%, and it is also a decrease from the $1.58 billion earned in the same period last year. Over the past few quarters, the company has only managed to surpass revenue expectations once.

The trajectory of the stock must now contend with how these recent earnings will influence future expectations. Investors should pay close attention to the comments made during the earnings call, as they can provide crucial insights.

Market Performance Context

Since the start of this year, shares of Academy Sports and Outdoors have decreased by approximately 20.2%, contrasting sharply with the S&P 500's increase of 14.7%. This divergence raises questions about the company's performance relative to broader market trends.

Future Outlook for Academy Sports and Outdoors

As investors consider what lies ahead for Academy Sports and Outdoors, the earnings forecast holds significant importance. This includes not just the current earnings consensus for upcoming quarters but also how these estimates have shifted recently.

Research indicates a strong link between stock movements in the near term and changes in earnings estimate revisions. Investors can track these fluctuations themselves or utilize established rating systems to gauge potential stock performance.

The prevailing revisions trend for Academy Sports and Outdoors is currently unfavorable. Following the recent earnings report, this status contributes to a Zacks Rank of #4 (Sell), suggesting that the stock is likely to lag behind the market in the foreseeable future. Observing how estimates alter for the next quarters and the ongoing fiscal year will be key.

As it stands, the current consensus EPS for the forthcoming quarter is $1.44, accompanied by projected revenues of $1.43 billion. For the current fiscal year, estimates suggest EPS of $6.51 and total revenues expected to reach $6.15 billion.

Industry Insights and Broader Market Position

The performance of Academy Sports and Outdoors can also be influenced by the health of the industry in which it operates. The Leisure and Recreation Products sector ranks in the lower echelon of the approximately 250 Zacks industries, indicating some headwinds for companies in this space. Analyses show that industries placed in the upper half of the Zacks rankings demonstrably outperform those in the lower half.

In contrast, Carnival CCL, as part of the broader Zacks Consumer Discretionary sector, is gearing up to unveil its earnings for the quarter ending August 2024. Analysts expect Carnival to announce earnings of $1.15 per share, reflecting a 33.7% year-over-year increase. The revenue for Carnival is anticipated to hit $7.8 billion, indicating a 13.7% rise compared to the previous year.

Frequently Asked Questions

What are the recent earnings of Academy Sports and Outdoors?

Academy Sports and Outdoors reported earnings of $2.03 per share for the latest quarter, which aligns with analyst estimates.

How has Academy Sports and Outdoors performed over the past year?

The company has reported a 20.2% decline in stock price since the beginning of the year, contrasting with a 14.7% gain in the S&P 500.

What can investors expect moving forward?

Current estimates suggest an EPS of $1.44 and $6.51 for the next quarter and fiscal year, respectively, indicating cautious optimism.

How does the industry rank affect Academy Sports and Outdoors?

The Leisure and Recreation Products industry is currently in the bottom 10% of Zacks industries, which could negatively impact stock performance.

What is the situation of Carnival in comparison?

Carnival is poised to report earnings soon and is expected to see a 33.7% increase year-over-year, potentially demonstrating stronger market performance than Academy Sports and Outdoors.

About Investors Hangout

Investors Hangout is a leading online stock forum for financial discussion and learning, offering a wide range of free tools and resources. It draws in traders of all levels, who exchange market knowledge, investigate trading tactics, and keep an eye on industry developments in real time. Featuring financial articles, stock message boards, quotes, charts, company profiles, and live news updates. Through cooperative learning and a wealth of informational resources, it helps users from novices creating their first portfolios to experts honing their techniques. Join Investors Hangout today: https://investorshangout.com/

Disclaimer: The content of this article is solely for general informational purposes only; it does not represent legal, financial, or investment advice. Investors Hangout does not offer financial advice; the author is not a licensed financial advisor. Consult a qualified advisor before making any financial or investment decisions based on this article. The author's interpretation of publicly available data shapes the opinions presented here; as a result, they should not be taken as advice to purchase, sell, or hold any securities mentioned or any other investments. The author does not guarantee the accuracy, completeness, or timeliness of any material, providing it "as is." Information and market conditions may change; past performance is not indicative of future outcomes. If any of the material offered here is inaccurate, please contact us for corrections.