ASO - Why Academy Sports And Outdoors May Report Its Highest Q4 Ever
2024-03-15 15:02:19 ET
Summary
- Academy Sports and Outdoors' Q4 and FY2023 earnings are expected to beat estimates.
- Positive earnings report from competitor DICK'S Sporting Goods suggests a positive outlook for Academy.
- Academy's store expansion plan and strong profitability metrics contribute to a revised upward estimate of its fair value.
Introduction
Academy Sports and Outdoors' ( ASO ) Q4 and FY2023 earnings are coming and there are reasons to believe the retailer will beat estimates. With so much talk about inflation and high interest rates, everyone was expecting extended consumer spending weakness. Furthermore, increasing shrink seemed to confirm an overall distress in many areas across the country. As a result, retailers saw some downward pressure, with DICK'S Sporting Goods ( DKS ) losing 25% of its market cap in one day, bottoming at a share price just above $100. Since then, DICK'S stock has doubled. But up until the beginning of February, DICK'S was trading at par with Academy. It was mainly after its recent earnings report that the stock soared, leading to a big jump in gains....
Why Academy Sports And Outdoors May Report Its Highest Q4 Ever