Academy Sports (NASDAQ:ASO) Soars on Q2 Earnings Beat

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Academy Sports and Outdoors (NASDAQ:ASO) shares are up in double digits today after the sports and outdoor products provider announced second-quarter numbers. While revenue declined 6.2% year-over-year, the figure still came in line with expectations. EPS of $2.09 handily sailed past estimates by $0.10.

Amid a challenging economic environment, while comparable sales declined by 7.5%, the company’s gross margin expanded by 30 basis points to 35.6%. ASO is planning to open 11-12 new stores in the fall, even as it focuses on expanding its omnichannel presence. The company is planning to open nearly 120 to 140 new stores until 2027. This promises to be a significant footprint expansion over its current store tally of 270.

Looking ahead to the full year 2023, the company expects net sales to range between $6,175 million and $6,365 million. EPS is anticipated in the range of $6.95 to $7.65. This is a tad higher as compared to the prior outlook, between $6.80 to $7.50. Additionally, ASO’s Board has announced a quarterly dividend of $0.09 per share. The dividend is payable on October 11 to investors of record on September 13.

Overall, the Street has a consensus price target of $66.79 on ASO, alongside a Strong Buy consensus rating.  This points to a hefty 33.7% potential upside in the stock.

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