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Academy (ASO) Gears Up for Q4 Earnings: What's in the Cards?

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Academy Sports and Outdoors, Inc. (ASO - Free Report) is scheduled to report fourth-quarter fiscal 2021 results on Mar 29, 2022, before market open. In the last reported quarter, the company delivered an earnings surprise of 50.9%.

Q4 Expectations

The Zacks Consensus Estimate for the fiscal fourth-quarter bottom line is pegged at $1.36 per share, indicating an improvement of 24.8% from $1.09 reported in the year-ago quarter.

For revenues, the consensus mark is pegged at $1,772 million. The metric suggests an increase of 10.9% from the year-ago quarter’s figure.

 

Let's take a look at how things have shaped up in the quarter.

Factors at Play

Academy’s fiscal fourth-quarter top line is likely to have benefitted from increased consumer demand for sports and outdoor categories, a solid e-commerce platform and a flexible inventory pipeline. This along with focus on product innovation (such as Yellowstone apparel and as outdoor pizza ovens), enhancement of customer shopping experience (in store and online), improvement of merchandise planning and allocation capabilities, increase in targeted marketing and strengthening of the supply chain, is likely to have added to the upside.

Progress toward the development of a stronger omnichannel business is likely to have driven the company’s performance in the fiscal fourth quarter. During the previous quarter’s earnings call, the company stated enhancements in its website capabilities with respect to back-end functionality and consumer-facing perspective. Also, it has added features and functionality to its website and mobile app to create faster and more seamless transactions. Backed by the solid traction with reference to its Academy app, the initiatives are likely to have driven conversion and customer satisfaction in the to-be-reported quarter.

Robust comparable sales are 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. Backed by a healthy inventory position coupled with convenient and engaging sales channels, the company anticipates fiscal 2021 comparable sales in the range of 17-18%, up from the previous projection of 14-17%.

What the Zacks Model Unveils

Our proven model predicts an earnings beat for Academy 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 has an Earnings ESP of +13.03%. 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

Here are other stocks in the Zacks Consumer Discretionary sector that investors may consider as our model shows that these also have the right combination of elements to post an earnings beat:

Whirlpool Corporation (WHR - Free Report) has an Earnings ESP of +7.36% and a Zacks Rank #2.

Shares of Whirlpool have declined 13.8% in the past six months. WHR’s earnings surpassed the consensus mark in all of the trailing four quarters, the average surprise being 14.9%.

Wyndham Hotels & Resorts, Inc. (WH - Free Report) has an Earnings ESP of +8.27% and a Zacks Rank #3.
 
Shares of Wyndham Hotels have gained 20.9% in the past year. WH’s earnings surpassed the consensus mark in all of the trailing four quarters, the average surprise being 36.1%.

PlayAGS, Inc. (AGS - Free Report) has an Earnings ESP of +0.94% and a Zacks Rank #3.
Shares of PlayAGS have declined 9.5% in the past year. AGS’ earnings beat the consensus mark thrice in the trailing four quarters and missed once, the average surprise being 7.1%.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.