ASO Gears Up for Q4 Earnings: What's in Store for the Stock?

Academy Sports and Outdoors, Inc. ASO is scheduled to report fourth-quarter fiscal 2024 results on Thursday, before the opening bell. In the last reported quarter, the company’s earnings missed the Zacks Consensus Estimate by 23.4%.Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar.Q4 Earnings Estimates of ASOThe Zacks Consensus Estimate for earnings is pegged at $1.82 per share, indicating a decline of 17.7% from $2.21 a year ago.The consensus mark for revenues is pegged at $1.67 billion, implying a decrease of 7.1% from the year-ago figure.Factors to Note Ahead of ASO’s Q4 ReleaseAcademy Sports' performance in fiscal fourth-quarter 2024 is likely to have to have faced headwinds from a tough macroeconomic environment, which has been weighing on its customer base. A reduction in discretionary spending, particularly among middle- and lower-income consumers, is likely to have affected the company’s sales. During its third-quarter fiscal 2024 earnings call, management highlighted an increase in credit card and Buy Now, Pay Later transactions, especially among lower-income shoppers. While these financing options have helped drive sales, they also indicate financial strain among consumers, raising concerns about the sustainability of demand.Dismal comps are also likely to have hurt the company’s top line. The Zacks Consensus Estimate for comps indicates a decline of 4.5%. The consensus estimate for Apparel, Outdoors, Footwear and Sports and Recreational revenues is pegged at $526 million, $443.9 million, $301.1 million and $411.5 million, down 3.5%, 4.6%, 6.7% and 9%, respectively, year over year.  On the other hand, high costs are likely to have negatively impacted the company’s bottom line. However, product innovation and expansion efforts are likely to have aided the performance. ASO’s focus on omnichannel improvements and digital enhancements, along with strengthening its inventory position (with seasonally appropriate products) to ensure the company’s growth momentum, also bodes well. Initiatives like My Academy Rewards and partnerships are likely to have boosted engagement and incremental sales.Academy Sports and Outdoors, Inc. Stock Price and EPS Surprise Academy Sports and Outdoors, Inc. price-eps-surprise | Academy Sports and Outdoors, Inc. QuoteWhat the Zacks Model Unveils for ASO SharesOur proven model does not conclusively predict an earnings beat for Academy Sports and Outdoors. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. This is not the case here. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.Academy Sports and Outdoors has an Earnings ESP of 0.00% and a Zacks Rank #4 (Sell) at present.Stocks With the Favorable Earnings ForecastsHere are three companies you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat this season:Five Below FIVE has an Earnings ESP of +0.50% and currently carries a Zacks Rank of 3. FIVE’s top line is anticipated to advance year over year when it reports fourth-quarter fiscal 2024 results. The Zacks Consensus Estimate for its quarterly revenues is pegged at $1.38 billion, which suggests a 3.1% rise from the figure reported in the year-ago quarter. You can see the complete list of today’s Zacks #1 Rank stocks here.The company is expected to register a decline in the bottom line. The consensus estimate for Five Below’s fiscal fourth-quarter earnings is pegged at $3.38 per share, down 7.4% from the year-ago quarter. FIVE has a trailing four-quarter earnings surprise of 39%, on average.Chewy CHWY has an Earnings ESP of +15.66% and a Zacks Rank of 2 at present. CHWY’s top line is anticipated to advance year over year when it reports fourth-quarter fiscal 2024 results. The Zacks Consensus Estimate for its quarterly revenues is pegged at $3.19 billion, which suggests a 13.1% rise from the figure reported in the year-ago quarter. The company is expected to register an increase in the bottom line. The consensus estimate for Chewy’s fiscal fourth-quarter earnings is pegged at 21 cents per share, up 16.7% from the year-ago quarter. CHWY has a trailing four-quarter negative earnings surprise of 30.9%, on average.Post Holdings POST currently has an Earnings ESP of +0.50% and a Zacks Rank of 2. The company is likely to register a decrease in the bottom line when it reports first-quarter fiscal 2025 numbers. The Zacks Consensus Estimate for the quarterly earnings per share is pegged at $1.19, down 21.2% from the year-ago period.Post Holdings’ top line is expected to decline year over year. The Zacks Consensus Estimate for quarterly revenues is pegged at $1.98 billion, which suggests a decrease of 0.7% from the prior-year quarter. POST has a trailing four-quarter negative earnings surprise of 22.3%, on average.Zacks' Research Chief Names "Stock Most Likely to Double"Our team of experts has just released the 5 stocks with the greatest probability of gaining +100% or more in the coming months. Of those 5, Director of Research Sheraz Mian highlights the one stock set to climb highest.This top pick is among the most innovative financial firms. With a fast-growing customer base (already 50+ million) and a diverse set of cutting edge solutions, this stock is poised for big gains. Of course, all our elite picks aren’t winners but this one could far surpass earlier Zacks’ Stocks Set to Double like Nano-X Imaging which shot up +129.6% in little more than 9 months.Free: See Our Top Stock And 4 Runners UpWant the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Five Below, Inc. (FIVE): Free Stock Analysis Report Post Holdings, Inc. (POST): Free Stock Analysis Report Chewy (CHWY): Free Stock Analysis Report Academy Sports and Outdoors, Inc. (ASO): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks