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Academy Sports (ASO) Q1 Earnings & Revenues Lag Estimates
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Academy Sports and Outdoors, Inc. (ASO - Free Report) reported dismal first-quarter fiscal 2024 results, with both earnings and revenues missing the Zacks Consensus Estimate. The top and bottom lines declined on a year-over-year basis.
Following the results, shares of the company declined 3.2% on Jun 11. The company’s customers remain under pressure due to the current economic environment.
Inside the Headlines
In the fiscal first quarter, the company reported adjusted earnings per share (EPS) of $1.08, missing the Zacks Consensus Estimate of $1.23 by 12.2%. The metric also declined 16.9% year over year.
Quarterly net sales of $1,364.2 million lagged the consensus estimate of $1,375 million by 0.8%, down 1.4% year over year. Comparable sales declined 5.7% year over year.
Academy Sports and Outdoors, Inc. Price, Consensus and EPS Surprise
In the fiscal first quarter, selling, general and administrative expenses (as a percentage of net sales) were up 130 bps to 25.9% year over year. Gross margin in the fiscal quarter decreased 40 bps year over year to 33.4%.
Net income in the reported quarter was $76.5 million compared with $93.8 million in the year-ago quarter.
Adjusted EBITDA in the fiscal first quarter was $142.6 million compared with $167.6 million in the year-ago quarter.
Balance Sheet
As of May 4, cash and cash equivalents totaled $378.1 million, up from $295.5 million at the end of Apr 29, 2023. Merchandise inventories at the end of the first quarter of fiscal 2024 were $1.36 billion compared with $1.39 billion in the year-ago period.
As of Feb 3, net long-term debt was $484.1 million, down from $584.1 million reported as of Apr 29, 2023.
Fiscal 2024 Outlook
For fiscal 2024, Academy Sports continues to expect net sales to be $6.07-$6.35 billion. The company expects comparable sales to be between negative 4% and positive 1%.
The gross margin rate in fiscal 2024 is expected between 34.3% and 34.7%. Capital expenditures in the year are anticipated in the range of $225-$275 million. The company expects 2024 net income between $455 million and $530 million.
Adjusted free cash flow in the year is expected between $290 million and $375 million. The company anticipates 2024 adjusted EPS to be in the range of $6.05-$7.05, up from the prior estimate of $5.90-$6.90.
NFLX has a trailing four-quarter earnings surprise of 9.3%, on average. The stock has risen 52% in the past year. The consensus estimate for NFLX’s 2024 sales and EPS implies a rise of 14.8% and 52.2%, respectively, from the year-ago levels.
Strategic Education, Inc. (STRA - Free Report) currently carries a Zacks Rank #1. STRA has a trailing four-quarter earnings surprise of 36.2%, on average.
The stock has risen 45.3% in the past year. The Zacks Consensus Estimate for STRA’s 2024 sales and EPS indicates an increase of 6.4% and 33.3%, respectively, from the year-ago levels.
Royal Caribbean Cruises Ltd. (RCL - Free Report) currently holds a Zacks Rank of 1. RCL has a trailing four-quarter earnings surprise of 18.3%, on average. The stock has surged 66.1% in the past year.
The Zacks Consensus Estimate for RCL’s 2024 sales and EPS implies growth of 16.8% and 63.8%, respectively, from the year-ago levels.
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Academy Sports (ASO) Q1 Earnings & Revenues Lag Estimates
Academy Sports and Outdoors, Inc. (ASO - Free Report) reported dismal first-quarter fiscal 2024 results, with both earnings and revenues missing the Zacks Consensus Estimate. The top and bottom lines declined on a year-over-year basis.
Following the results, shares of the company declined 3.2% on Jun 11. The company’s customers remain under pressure due to the current economic environment.
Inside the Headlines
In the fiscal first quarter, the company reported adjusted earnings per share (EPS) of $1.08, missing the Zacks Consensus Estimate of $1.23 by 12.2%. The metric also declined 16.9% year over year.
Quarterly net sales of $1,364.2 million lagged the consensus estimate of $1,375 million by 0.8%, down 1.4% year over year. Comparable sales declined 5.7% year over year.
Academy Sports and Outdoors, Inc. Price, Consensus and EPS Surprise
Academy Sports and Outdoors, Inc. price-consensus-eps-surprise-chart | Academy Sports and Outdoors, Inc. Quote
Operating Highlights
In the fiscal first quarter, selling, general and administrative expenses (as a percentage of net sales) were up 130 bps to 25.9% year over year. Gross margin in the fiscal quarter decreased 40 bps year over year to 33.4%.
Net income in the reported quarter was $76.5 million compared with $93.8 million in the year-ago quarter.
Adjusted EBITDA in the fiscal first quarter was $142.6 million compared with $167.6 million in the year-ago quarter.
Balance Sheet
As of May 4, cash and cash equivalents totaled $378.1 million, up from $295.5 million at the end of Apr 29, 2023. Merchandise inventories at the end of the first quarter of fiscal 2024 were $1.36 billion compared with $1.39 billion in the year-ago period.
As of Feb 3, net long-term debt was $484.1 million, down from $584.1 million reported as of Apr 29, 2023.
Fiscal 2024 Outlook
For fiscal 2024, Academy Sports continues to expect net sales to be $6.07-$6.35 billion. The company expects comparable sales to be between negative 4% and positive 1%.
The gross margin rate in fiscal 2024 is expected between 34.3% and 34.7%. Capital expenditures in the year are anticipated in the range of $225-$275 million. The company expects 2024 net income between $455 million and $530 million.
Adjusted free cash flow in the year is expected between $290 million and $375 million. The company anticipates 2024 adjusted EPS to be in the range of $6.05-$7.05, up from the prior estimate of $5.90-$6.90.
ASO currently has a Zacks Rank #3 (Hold).
Key Picks
Here are some better-ranked stocks from the Zacks Consumer Discretionary sector.
Netflix, Inc. (NFLX - Free Report) presently sports a Zacks Rank of 1 (Strong Buy). You can see the complete list of today’s Zacks Rank #1 stocks here.
NFLX has a trailing four-quarter earnings surprise of 9.3%, on average. The stock has risen 52% in the past year. The consensus estimate for NFLX’s 2024 sales and EPS implies a rise of 14.8% and 52.2%, respectively, from the year-ago levels.
Strategic Education, Inc. (STRA - Free Report) currently carries a Zacks Rank #1. STRA has a trailing four-quarter earnings surprise of 36.2%, on average.
The stock has risen 45.3% in the past year. The Zacks Consensus Estimate for STRA’s 2024 sales and EPS indicates an increase of 6.4% and 33.3%, respectively, from the year-ago levels.
Royal Caribbean Cruises Ltd. (RCL - Free Report) currently holds a Zacks Rank of 1. RCL has a trailing four-quarter earnings surprise of 18.3%, on average. The stock has surged 66.1% in the past year.
The Zacks Consensus Estimate for RCL’s 2024 sales and EPS implies growth of 16.8% and 63.8%, respectively, from the year-ago levels.