Academy Sports (ASO) Reports Q3: Everything You Need To Know Ahead Of Earnings

Jabin Bastian /
2023/11/29 2:00 am EST

Sporting goods retailer Academy Sports & Outdoor (NASDAQ:ASO) will be reporting earnings tomorrow morning. Here's what to expect.

Last quarter Academy Sports reported revenues of $1.58 billion, down 6.2% year on year, in line with analyst expectations. It was a decent quarter for the company, with a beat of analysts' EPS estimates. Academy Sports also provided full-year revenue guidance that slightly topped analysts' expectations.

Is Academy Sports buy or sell heading into the earnings? Read our full analysis here, it's free.

This quarter analysts are expecting Academy Sports's revenue to decline 3.5% year on year to $1.44 billion, improvement on the 6.2% year-over-year decrease in revenue the company had recorded in the same quarter last year. Adjusted earnings are expected to come in at $1.58 per share.

Academy Sports Total Revenue

The analysts covering the company have been growing increasingly bearish about the business heading into the earnings, with revenue estimates seeing six downwards revisions over the last thirty days. The company missed Wall St's revenue estimates four times over the last two years.

Looking at Academy Sports's peers in the specialty retail segment, some of them have already reported Q3 earnings results, giving us a hint of what we can expect. Best Buy Co's revenues decreased 7.8% year on year, missing analyst estimates by 1.4% and Sally Beauty reported revenue decline of 4.3% year on year, missing analyst estimates by 1.1%. Best Buy Co traded down 2.3% on the results, and Sally Beauty was down 1.6%.

Read our full analysis of Best Buy Co's results here and Sally Beauty's results here.

There has been positive sentiment among investors in the specialty retail segment, with the stocks up on average 10.3% over the last month. Academy Sports is up 10.9% during the same time, and is heading into the earnings with analyst price target of $65.9, compared to share price of $49.7.

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The author has no position in any of the stocks mentioned.