Why Academy Sports Shares Are Sliding Today
Portfolio Pulse from Nabaparna Bhattacharya
Academy Sports And Outdoors, Inc. (NASDAQ:ASO) reported lower-than-expected Q3 FY23 results with a 6.4% sales decline to $1.398 billion, missing estimates of $1.440 billion. Adjusted EPS was $1.38, below the consensus of $1.59. Comparable sales fell 8%, and gross margin contracted to 34.5%. Operating income dropped 23.8% to $136.73 million. The company opened 14 stores in 2023 and declared a $0.09 per share dividend. A new $600 million share repurchase program was approved. FY23 sales outlook was lowered to $6.110 billion-$6.170 billion, with adjusted EPS guidance narrowed to $7.05-$7.20. ASO shares fell 1.05% to $50.01.
November 30, 2023 | 4:24 pm
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NEGATIVE IMPACT
Academy Sports (ASO) reported disappointing Q3 results with sales and EPS below estimates, a decline in comparable sales, and a lowered FY23 outlook. The company also announced a new $600 million share repurchase program and a dividend.
The negative earnings report and lowered guidance are likely to impact investor sentiment negatively in the short term, leading to a potential decrease in stock price. The share repurchase program and dividend announcement may provide some support to the stock price, but the overall impact is expected to be negative due to the earnings miss and lowered outlook.
CONFIDENCE 85
IMPORTANCE 90
RELEVANCE 100