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What's in Store for Academy Sports and Outdoors' (ASO) Q3 Earnings?

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Academy Sports and Outdoors, Inc. (ASO - Free Report) is scheduled to report third-quarter fiscal 2021 results on Dec 10, before market open. In the last reported quarter, the company delivered an earnings surprise of 52%.

Q3 Expectations

The Zacks Consensus Estimate for the fiscal third-quarter bottom line is pegged at $1.16 per share, indicating an improvement of 27.5% from 91 cents reported in the year-ago quarter.

For revenues, the consensus mark is pegged at $1,502 million. The metric suggests an increase of 11.4% from the year-ago quarter’s figure.

 

Factors at Play

Academy Sports and Outdoors fiscal third-quarter top line is likely to have benefitted from increased demand in the licensed apparel business and sporting goods as well as solid e-commerce sales. This along with investments in omnichannel such as the launch of a mobile app (in July), relevant product recommendations, enhanced ship-to-store capabilities and new search and checkout functionality, is likely to have added to the upside.

The company’s fiscal third-quarter performance is likely to have benefitted from a more normalized back-to-school environment and return of sporting events in the fall and holiday season. An increase in consumer spending coupled with improvements in inventory positions, better content along with controlled distribution is likely to have aided the company’s performance in the fiscal third quarter.

Robust comparable sales is likely to have sustained in the quarter under review owing to strong demand across product categories and geographic regions. The company’s customer base has been increasing. Partnerships with key national brands, such as Nike, adidas, Under Armour, Columbia and The North Face, are encouraging. Gross margin in the quarter is likely to have benefited from enhanced merchandise margins from a favorable mix shift and increase in average unit retails.

What the Zacks Model Unveils

Our proven model predicts an earnings beat for Academy Sports and Outdoors this time around. A stock needs to have a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) to beat estimates.

Earnings ESP: Academy Sports and Outdoors has an Earnings ESP of +49.78%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: The company has a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.

Other Stocks to Consider

Some better-ranked stocks in the Consumer Discretionary sector include Hilton Grand Vacations Inc. (HGV - Free Report) , Bluegreen Vacations Holding Corporation (BVH - Free Report) and Camping World Holdings, Inc. (CWH - Free Report) .

Hilton Grand Vacations sports a Zacks Rank #1 (Strong Buy). The company has a trailing four-quarter earnings surprise of 411.1%, on average. Shares of the company have increased 59.6% so far this year.

The Zacks Consensus Estimate for Hilton Grand Vacations’ current financial-year sales and earnings per share (EPS) suggests growth of 222.1% and 170.8%, respectively, from the year-ago period’s levels.

Bluegreen Vacations flaunts a Zacks Rank #1. The company has a trailing four-quarter earnings surprise of 695%, on average. Shares of the company have surged 127.4% so far this year.

The Zacks Consensus Estimate for Bluegreen Vacations’ current financial-year sales and EPS indicates growth of 27.5% and 199.3%, respectively, from the year-ago period’s levels.

Camping World carries a Zacks Rank #2 (Buy). The company benefits from the launch of a fresh peer-to-peer RV rental marketplace and a mobile service marketplace. It has been investing heavily in product development.

Camping World has a trailing four-quarter earnings surprise of 70.9%, on average. Shares of the company have appreciated 61.1% so far this year. The Zacks Consensus Estimate for CWH’s financial-year sales and EPS suggests growth of 25.9% and 77.6%, respectively, from the year-ago period’s levels.