Academy Sports Earnings: Revenue Expected to Grow 3.8% YoY

Academy Sports & Outdoor (ASO) will report Q2 earnings on Tuesday, with analysts expecting a 3.8% YoY revenue growth to $1.61 billion and adjusted earnings of $2.13 per share. The company missed revenue expectations by 1.5% last quarter, with a significant miss of analysts' EBITDA and EPS estimates. Analysts have reconfirmed their estimates, and the specialty retail segment has seen positive sentiment among investors, with share prices up 6.8% on average over the last month.

Academy Sports & Outdoor (ASO) is set to release its Q2 fiscal 2025 earnings on Tuesday before market hours. Analysts are expecting the company to report a 3.8% year-over-year (YoY) revenue growth, reaching $1.61 billion, and adjusted earnings of $2.13 per share [1]. This follows a challenging Q1 where Academy Sports missed revenue expectations by 1.5%, with significant misses on EBITDA and EPS estimates [1].

Despite the recent underperformance, analysts have been largely optimistic. Over the past 30 days, the majority of analysts covering the company have reconfirmed their estimates, suggesting they anticipate the business to stay the course heading into earnings [1]. This optimism is echoed in the specialty retail segment, where share prices have seen an average increase of 6.8% over the last month [1].

Peers in the specialty retail segment have also reported positive results. Dick's Sporting Goods delivered year-on-year revenue growth of 5%, beating estimates by 1.1%, while Ulta Beauty reported revenues up 9.3%, topping estimates by 4.2% [1]. However, both companies saw their share prices trade down after their respective earnings releases, with Dick's down 5.9% and Ulta down 7.1% [1].

Academy Sports and Outdoors is expected to report earnings of $2.12 per share, with revenues anticipated to reach $1.61 billion, according to Wall Street analysts [3]. The consensus estimate for 'Net Sales- Merchandise Division Sales- Outdoors' is $431.73 million, indicating a 10.2% increase from the prior-year quarter [3]. The company's 'Net Sales- Merchandise Division Sales- Sports and recreation' is expected to reach $382.84 million, a decrease of 4.8% from the prior-year quarter [3].

The average analyst price target for ASO is $57.50, compared to the current share price of $53.90 [1]. While analyst price targets are subjective, they often reflect the company's fundamentals. The majority of analysts have a Buy or Hold rating, with a few predicting a price increase [2].

References:
[1] https://finance.yahoo.com/news/earnings-watch-academy-sports-aso-030048354.html
[2] https://intellectia.ai/news/stock/academy-sports--outdoors-announces-second-quarter-fiscal-2025-results-conference-call
[3] https://finance.yahoo.com/news/academy-sports-outdoors-aso-q2-131502153.html