Academy Sports & Outdoor Inc. (NYSE: ASO) has confirmed that it will release its Q3 2021 earnings results on Friday, December 10, 2021, before markets open.
What to look for
In the short period since it went public, the company has topped earnings in each quarter, and after it released Q2 2021 earnings its raised full-year guidance. The company is expected to post another strong quarter when it reports its earnings following the return of team sports in the fall, the start of the hunting season, and its launch of a mobile app in July 2021. In addition, the company continues to invest in omnichannel as it improves operations.
Earnings: Stockearning’s Estimated EPS for Q3 2021 will be $1.09 per share, representing a YoY increase of $19.8 million. In the second quarter, the company produced a 51.95% earnings surprise with an EPS of $2.34, beating the estimated EPS of $1.54. Historical EPS Performance over the past 12 quarters shows that the company has topped estimates four times (100%).
Revenue: The company is expected to post revenue of $1.49 billion in Q3 2021, representing a YoY growth of 10.3%. In the second quarter, the company reported a sales growth of 44.8%, but this growth is expected to slow as the company’s business matures.
Stock Movement: Since the last earnings release, ASO stock has lost 4.9% of its value. ASO shares have been UP 4 times out of the past four quarters following the earnings release. So, the historical price reaction suggests a 100% probability of the share price going UP once ASO releases fiscal Q3 2021 earnings. According to the Stockearning algorithm, the predicted first-day move is 5%, while the predicted move on the seventh day is 14%.
What analysts are saying
Wedbush analyst Seth Basham commenced coverage on Academy Sports & Outdoor with a "buy" rating and price target of $54 per share. Basham stated that the company has transformed under CEO Ken Hick's leadership "from an average retailer to a top-tier sporting goods retailer." The analyst believes the company "can continue to hit home runs" despite comparisons becoming challenging with supply chain constraints remaining to be near-term risks.
Also, Oppenheimer analyst Brian Nagel commenced coverage on the stock with a "Buy" rating a 12 to an 18-month target price of $50, implying an upside potential of 25%. The analyst sees the new leadership having improved operational discipline and placed t it in a “steady unit expansion in existing and new markets.” Nagel believes structural improvements “should turn clearer” in the coming several quarters.
Recently UBS analyst Michael Lasser raised his price target on ASO from 448 to $52 but maintained a "Buy" rating in the stock. He told investors in a research note that Academy Sports' better than anticipated Q2 2021 results affirmed his view that ASO offers a "compelling" risk-reward prospect in hardline retail. Lasse3r added that the company is generating considerable free cash flow, which is used for stock repurchases and paying down debt.
Related News
Dollar General (NYSE: DG) Earnings Expectations, EPS of $2.02 in Q3 2021
Royal Bank of Canada (NYSE: RY) Earnings Expectation, 58% chance for share Going UP After Earnings Release