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What Awaits Academy Sports and Outdoors (ASO) in Q3 Earnings?

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Academy Sports and Outdoors, Inc. (ASO - Free Report) is scheduled to report third-quarter fiscal 2023 results on Nov 30. In the last reported quarter, the company’s earnings beat the Zacks Consensus Estimate by 4.5%.

Q3 Estimates

The Zacks Consensus Estimate for earnings is pegged at $1.65 per share, indicating a decline of 2.4% from $1.69 a year ago.

The consensus mark for revenues is pegged at $1.46 billion, suggesting a decrease of 2% from the year-ago figure.

Factors to Note

Academy Sports and Outdoors’ fiscal third-quarter results are likely to be negatively impacted by dismal comparable sales, challenging macro environment and the prospect of tough prior-year comparisons. The Zacks Consensus Estimate for merchandise division sales for apparel and footwear are currently pegged at $376 million and $320 million, indicating a 6.4% and 4.8% year-over-year decline, respectively. However, the consensus estimate for merchandise division sales for outdoor is currently pegged at $479 million, suggesting a marginal rise from $473 million in the prior-year quarter.

The company’s focus on product innovation and expansion efforts are likely to have aided its performance in the fiscal third quarter. Partnerships with key national brands, such as Nike, adidas, Under Armour, Columbia and The North Face, are encouraging.

What the Zacks Model Unveils

Our proven model predicts an earnings beat for Academy Sports and Outdoors this time around. 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. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Academy Sports and Outdoors has an Earnings ESP of +1.75% and a Zacks Rank #3 (Hold).

Other Stocks With Favorable Combination

Here are three other 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.

Choice Hotels International, Inc. (CHH - Free Report) has an Earnings ESP of +1.22% and a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.

Shares of Choice Hotels have declined 8% in the past year. CHH’s earnings beat estimates in three of the trailing four quarters and missed once, the average surprise being 5.2%.

Planet Fitness, Inc. (PLNT - Free Report) has an Earnings ESP of +0.18% and a Zacks Rank #3.

Shares of Planet Fitness have declined 14.7% in the past year. PLNT’s earnings beat estimates in three of the trailing four quarters and missed once, the average surprise being 7.4%.

Caleres, Inc. (CAL - Free Report) has an Earnings ESP of +0.20% and a Zacks Rank #3.

Shares of Caleres have gained 21.8% in the past year. CAL’s earnings surpassed the consensus mark in each of the trailing four quarters, the average surprise being 5.8%.

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

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