Academy Sports and Outdoors, Inc. ASO is scheduled to report third-quarter fiscal 2024 results on Dec. 10. In the last reported quarter, the company’s earnings was in line with the Zacks Consensus Estimate.

Q3 Estimates of ASO

The Zacks Consensus Estimate for earnings is pegged at $1.31 per share, indicating a decline of 5.1% from $1.38 a year ago.

The consensus mark for revenues is pegged at $1.37 billion, implying a decrease of 1.7% from the year-ago figure.

Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar.

Factors to Note Ahead of ASO’s Q3 Release

Academy Sports' performance in third-quarter 2024 is likely to have been hurt by a challenging macroeconomic environment which has been impacting its customer base. A decline in discretionary spending by middle and low-income consumers is likely to have hurt the company.

Dismal comps are also likely to have hurt the company’s top line. The Zacks Consensus Estimate for comps indicates a decline of 3.6%. The consensus estimate for Apparel, Outdoors, Footwear and Sports and Recreational revenues is pegged at $374.7 million, $424 million, $316.6 million and $253.5 million, up 0.2%, down 3.8%, 2.5% and 5.1%, respectively, year over year.

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.

What the Zacks Model Unveils for ASO

Our 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 -6.25% and a Zacks Rank #4 (Sell) at present.

Stocks to Consider

Here we present three stocks you may want to consider as our model shows that these have the right combination of elements to post an earnings beat this season.

Boyd Gaming Corporation BYD currently has an Earnings ESP of +10.81% and a Zacks Rank of 3. You can see the complete list of today’s Zacks #1 Rank stocks here.

BYD’s earnings for the to-be-reported quarter are expected to increase 6.6%. It reported better-than-expected earnings in three of the trailing four quarters and missed the other, the average surprise being 6.9%.

Carnival Corporation & plc CCL has an Earnings ESP of +13.29% and a Zacks Rank of 1 at present.

It reported better-than-expected earnings in each of the trailing four quarters, with an average earnings surprise of 318.1%.

Norwegian Cruise Line Holdings Ltd. NCLH currently has an Earnings ESP of +10.00% and a Zacks Rank of 2.

NCLH’s earnings for the to-be-reported quarter are expected to increase 134.3%. It reported better-than-expected earnings in three of the trailing four quarters and missed the other, the average surprise being 4.2%.

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Carnival Corporation (CCL) : Free Stock Analysis Report

Boyd Gaming Corporation (BYD) : Free Stock Analysis Report

Norwegian Cruise Line Holdings Ltd. (NCLH) : Free Stock Analysis Report

Academy Sports and Outdoors, Inc. (ASO) : Free Stock Analysis Report

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