Academy Sports and Outdoors, Inc. (ASO) is set to report its third-quarter earnings before the market opens on Tuesday, December 9, and analysts are anticipating a solid improvement over last year's results.
The Katy, Texas-based sporting goods retailer is expected to post quarterly earnings of $1.06 per share, marking an increase from 98 cents per share in the year-ago period. Revenue projections are equally optimistic, with the consensus estimate calling for $1.41 billion compared to $1.34 billion a year earlier, according to market data.
The upcoming report comes after a disappointing second quarter back on September 2, when Academy Sports reported adjusted earnings per share of $1.94, falling short of the analyst consensus estimate of $2.16. Quarterly sales of $1.599 billion, while up 3.3% year over year, also missed expectations of $1.614 billion.
Despite that stumble, Academy Sports shares rose 1.9% to close at $50.23 on Friday, suggesting investors are looking ahead rather than dwelling on past misses.
What the Most Accurate Analysts Are Saying
Several of Wall Street's top-performing analysts have weighed in on Academy Sports recently, offering a range of perspectives on where the stock might be headed.
Evercore ISI Group analyst Greg Melich, who boasts a 77% accuracy rate, maintained an In-Line rating on October 14 while raising his price target from $50 to $55. That's a vote of confidence in the company's trajectory, even if he's not ready to call it a strong buy just yet.
Barclays analyst Adrienne Yih initiated coverage on September 30 with an Equal-Weight rating and a $51 price target. With a 69% accuracy rate, Yih's neutral stance suggests the stock is fairly valued at current levels.
On the more bullish side, Guggenheim analyst John Heinbockel maintained a Buy rating with a $60 price target on September 8. Heinbockel, who has a 60% accuracy rate, sees more upside potential than most of his peers.
Not everyone is quite as optimistic. Citigroup analyst Paul Lejuez downgraded the stock from Buy to Neutral on September 3, cutting his price target from $55 to $50. With a 65% accuracy rate, Lejuez's caution came right after the disappointing Q2 results.
Meanwhile, JP Morgan analyst Christopher Horvers maintained a Neutral rating but raised his price target from $54 to $56 on September 3. Horvers has a 73% accuracy rate, making him one of the more reliable voices in this coverage universe.
The general consensus? Analysts see Academy Sports as reasonably valued here, with most price targets clustering in the low-to-mid $50s. Tuesday's earnings report should give us a clearer picture of whether the company can regain its footing after last quarter's miss.
