Latest news with #AcademySports
Yahoo
5 hours ago
- Business
- Yahoo
Academy Sports (NASDAQ:ASO) Reports Sales Below Analyst Estimates In Q1 Earnings
Sporting goods retailer Academy Sports & Outdoor (NASDAQ:ASO) fell short of the market's revenue expectations in Q1 CY2025, with sales flat year on year at $1.35 billion. On the other hand, the company's outlook for the full year was close to analysts' estimates with revenue guided to $6.12 billion at the midpoint. Its non-GAAP profit of $0.76 per share was 14.7% below analysts' consensus estimates. Is now the time to buy Academy Sports? Find out in our full research report. Revenue: $1.35 billion vs analyst estimates of $1.37 billion (flat year on year, 1.5% miss) Adjusted EPS: $0.76 vs analyst expectations of $0.89 (14.7% miss) Adjusted EBITDA: $109.8 million vs analyst estimates of $120.7 million (8.1% margin, 9.1% miss) The company dropped its revenue guidance for the full year to $6.12 billion at the midpoint from $6.18 billion, a 1% decrease Management lowered its full-year Adjusted EPS guidance to $5.85 at the midpoint, a 2.1% decrease Operating Margin: 5.1%, down from 7.5% in the same quarter last year Free Cash Flow Margin: 7.9%, down from 12.3% in the same quarter last year Locations: 303 at quarter end, up from 284 in the same quarter last year Same-Store Sales fell 3.7% year on year (-5.7% in the same quarter last year) Market Capitalization: $2.95 billion 'During the first quarter we saw continued progress across our strategic initiatives, including the opening of five new stores, and the biggest brand launch in the Company's history with the addition of the Jordan Brand,' said Steve Lawrence, Chief Executive Officer. Founded in 1938 as a tire shop before expanding into fishing equipment, Academy Sports & Outdoor (NASDAQ:ASO) sells a broad selection of sporting goods but is still known for its outdoor activity merchandise. A company's long-term sales performance is one signal of its overall quality. Any business can put up a good quarter or two, but the best consistently grow over the long haul. With $5.92 billion in revenue over the past 12 months, Academy Sports is a mid-sized retailer, which sometimes brings disadvantages compared to larger competitors benefiting from better economies of scale. As you can see below, Academy Sports's 3.8% annualized revenue growth over the last six years (we compare to 2019 to normalize for COVID-19 impacts) was sluggish. This quarter, Academy Sports missed Wall Street's estimates and reported a rather uninspiring 0.9% year-on-year revenue decline, generating $1.35 billion of revenue. Looking ahead, sell-side analysts expect revenue to grow 5.2% over the next 12 months, similar to its six-year rate. This projection is noteworthy and implies its newer products will catalyze better top-line performance. Software is eating the world and there is virtually no industry left that has been untouched by it. That drives increasing demand for tools helping software developers do their jobs, whether it be monitoring critical cloud infrastructure, integrating audio and video functionality, or ensuring smooth content streaming. Click here to access a free report on our 3 favorite stocks to play this generational megatrend. Academy Sports operated 303 locations in the latest quarter. It has opened new stores at a rapid clip over the last two years, averaging 5.3% annual growth, much faster than the broader consumer retail sector. This gives it a chance to become a large, scaled business over time. When a retailer opens new stores, it usually means it's investing for growth because demand is greater than supply, especially in areas where consumers may not have a store within reasonable driving distance. The change in a company's store base only tells one side of the story. The other is the performance of its existing locations and e-commerce sales, which informs management teams whether they should expand or downsize their physical footprints. Same-store sales is an industry measure of whether revenue is growing at those existing stores and is driven by customer visits (often called traffic) and the average spending per customer (ticket). Academy Sports's demand has been shrinking over the last two years as its same-store sales have averaged 5.4% annual declines. This performance is concerning - it shows Academy Sports artificially boosts its revenue by building new stores. We'd like to see a company's same-store sales rise before it takes on the costly, capital-intensive endeavor of expanding its store base. In the latest quarter, Academy Sports's same-store sales fell by 3.7% year on year. This decrease represents a further deceleration from its historical levels. We hope the business can get back on track. It was encouraging to see Academy Sports beat analysts' gross margin expectations this quarter. On the other hand, its revenue, EPS, and EBITDA missed and it lowered its full-year guidance. Overall, this was a softer quarter. The stock remained flat at $44.50 immediately following the results. Is Academy Sports an attractive investment opportunity right now? If you're making that decision, you should consider the bigger picture of valuation, business qualities, as well as the latest earnings. We cover that in our actionable full research report which you can read here, it's free.
Yahoo
a day ago
- Business
- Yahoo
Academy Sports (ASO) Q1 Earnings: What To Expect
Sporting goods retailer Academy Sports & Outdoor (NASDAQ:ASO) will be reporting results tomorrow before market open. Here's what you need to know. Academy Sports met analysts' revenue expectations last quarter, reporting revenues of $1.68 billion, down 6.6% year on year. It was a slower quarter for the company, with full-year EPS guidance missing analysts' expectations significantly and a significant miss of analysts' gross margin estimates. Is Academy Sports a buy or sell going into earnings? Read our full analysis here, it's free. This quarter, analysts are expecting Academy Sports's revenue to be flat year on year at $1.37 billion, improving from the 1.4% decrease it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.89 per share. Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Academy Sports has missed Wall Street's revenue estimates six times over the last two years. Looking at Academy Sports's peers in the specialty retail segment, some have already reported their Q1 results, giving us a hint as to what we can expect. Sportsman's Warehouse delivered year-on-year revenue growth of 2%, beating analysts' expectations by 4.6%, and Dick's reported revenues up 5.2%, topping estimates by 0.7%. Sportsman's Warehouse traded up 11.3% following the results while Dick's was also up 4.1%. Read our full analysis of Sportsman's Warehouse's results here and Dick's results here. There has been positive sentiment among investors in the specialty retail segment, with share prices up 3.4% on average over the last month. Academy Sports is down 7.5% during the same time and is heading into earnings with an average analyst price target of $54.94 (compared to the current share price of $42.93). Today's young investors likely haven't read the timeless lessons in Gorilla Game: Picking Winners In High Technology because it was written more than 20 years ago when Microsoft and Apple were first establishing their supremacy. But if we apply the same principles, then enterprise software stocks leveraging their own generative AI capabilities may well be the Gorillas of the future. So, in that spirit, we are excited to present our Special Free Report on a profitable, fast-growing enterprise software stock that is already riding the automation wave and looking to catch the generative AI next. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Globe and Mail
28-05-2025
- Business
- Globe and Mail
Academy Sports and Outdoors: A Solid Investment or Just Another Regional Player?
Explore the exciting world of Academy Sports and Outdoors (NASDAQ: ASO) with our expert analysts in this Motley Fool Scoreboard episode. Check out the video below to gain valuable insights into market trends and potential investment opportunities! *Stock prices used were the prices of April 23, 2025. The video was published on May 28, 2025. Should you invest $1,000 in Academy Sports And Outdoors right now? Before you buy stock in Academy Sports And Outdoors, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Academy Sports And Outdoors wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $653,389!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $830,492!* Now, it's worth noting Stock Advisor 's total average return is982% — a market-crushing outperformance compared to171%for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of May 19, 2025
Yahoo
22-05-2025
- Business
- Yahoo
Academy Sports, Krispy Kreme, Spectrum Brands, Gray Television, and PENN Entertainment Shares Are Falling, What You Need To Know
A number of stocks fell in the afternoon session after the major indices pulled back (Nasdaq -1.3%, S&P 500 - 1.4%) as Treasury yields rose, reflecting market anxiety over a draft federal budget that could worsen the already wide US fiscal deficit. A poor auction for 20-year U.S. Treasury bonds further raised concerns, as weak demand implies investors are becoming more cautious about holding long-dated U.S. debt. As a reminder, the driver of a stock's value is the sum of its future cash flows discounted back to today. With lower interest rates (yields), investors can apply higher valuations to their stocks; when yields rise, that math works in reverse. Adding to the cautious mood were earnings results from retail giants Target and Lowe's, both of which reported weak earnings that missed expectations, pointing to a potential slowdown in consumer spending and further weighing on sentiment. Lastly, some influential voices such as Jamie Dimon (JPMorgan) and Steve Cohen (Point72) made cautious comments about the market, which can sometimes become self-fulfilling prophecies as investors increase their cautiousness and skittishness. The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks. Among others, the following stocks were impacted: Sports & Outdoor Equipment Retailer company Academy Sports (NASDAQ:ASO) fell 5.2%. Is now the time to buy Academy Sports? Access our full analysis report here, it's free. Traditional Fast Food company Krispy Kreme (NASDAQ:DNUT) fell 5.1%. Is now the time to buy Krispy Kreme? Access our full analysis report here, it's free. Household Products company Spectrum Brands (NYSE:SPB) fell 5.4%. Is now the time to buy Spectrum Brands? Access our full analysis report here, it's free. Broadcasting company Gray Television (NYSE:GTN) fell 5.5%. Is now the time to buy Gray Television? Access our full analysis report here, it's free. Casino Operator company PENN Entertainment (NASDAQ:PENN) fell 5.5%. Is now the time to buy PENN Entertainment? Access our full analysis report here, it's free. PENN Entertainment's shares are extremely volatile and have had 31 moves greater than 5% over the last year. In that context, today's move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business. The previous big move we wrote about was 29 days ago when the stock gained 8.2% on the news that investor sentiment improved on renewed optimism that the US-China trade conflict might be nearing a resolution. According to reports, Treasury Secretary Scott Bessent reinforced this positive outlook by describing the trade war as "unsustainable," and emphasized that a potential agreement between the two economic powers "was possible." His comments signaled to markets that both sides might be motivated to seek common ground, raising expectations for reduced tariffs and more stability across markets. PENN Entertainment is down 26.2% since the beginning of the year, and at $14.20 per share, it is trading 37.5% below its 52-week high of $22.73 from February 2025. Investors who bought $1,000 worth of PENN Entertainment's shares 5 years ago would now be looking at an investment worth $478.92. Here at StockStory, we certainly understand the potential of thematic investing. Diverse winners from Microsoft (MSFT) to Alphabet (GOOG), Coca-Cola (KO) to Monster Beverage (MNST) could all have been identified as promising growth stories with a megatrend driving the growth. So, in that spirit, we've identified a relatively under-the-radar profitable growth stock benefiting from the rise of AI, available to you FREE via this link. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
21-05-2025
- Business
- Yahoo
3 Reasons to Avoid ASO and 1 Stock to Buy Instead
Since November 2024, Academy Sports has been in a holding pattern, posting a small return of 0.8% while floating around $45.60. Is now the time to buy Academy Sports, or should you be careful about including it in your portfolio? Dive into our full research report to see our analyst team's opinion, it's free. We're sitting this one out for now. Here are three reasons why you should be careful with ASO and a stock we'd rather own. Reviewing a company's long-term sales performance reveals insights into its quality. Any business can put up a good quarter or two, but the best consistently grow over the long haul. Unfortunately, Academy Sports's 4.2% annualized revenue growth over the last five years was sluggish. This was below our standard for the consumer retail sector. Same-store sales show the change in sales for a retailer's e-commerce platform and brick-and-mortar shops that have existed for at least a year. This is a key performance indicator because it measures organic growth. Academy Sports's demand has been shrinking over the last two years as its same-store sales have averaged 5.9% annual declines. Operating margin is an important measure of profitability as it shows the portion of revenue left after accounting for all core expenses – everything from the cost of goods sold to advertising and wages. It's also useful for comparing profitability across companies with different levels of debt and tax rates because it excludes interest and taxes. Looking at the trend in its profitability, Academy Sports's operating margin decreased by 1.9 percentage points over the last year. This raises questions about the company's expense base because its revenue growth should have given it leverage on its fixed costs, resulting in better economies of scale and profitability. Its operating margin for the trailing 12 months was 9.1%. Academy Sports isn't a terrible business, but it doesn't pass our bar. That said, the stock currently trades at 6.9× forward P/E (or $45.60 per share). While this valuation is optically cheap, the potential downside is big given its shaky fundamentals. We're pretty confident there are superior stocks to buy right now. We'd suggest looking at our favorite semiconductor picks and shovels play. Donald Trump's victory in the 2024 U.S. Presidential Election sent major indices to all-time highs, but stocks have retraced as investors debate the health of the economy and the potential impact of tariffs. While this leaves much uncertainty around 2025, a few companies are poised for long-term gains regardless of the political or macroeconomic climate, like our Top 6 Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 176% over the last five years. Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-small-cap company Exlservice (+354% five-year return). Find your next big winner with StockStory today. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
