Please ensure Javascript is enabled for purposes of website accessibility

Why Academy Sports Stock Is Higher Today

By Lou Whiteman - Mar 30, 2021 at 3:44PM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The company's results, and outlook, came in well ahead of expectations.

What happened

Shares of Academy Sports and Outdoors (ASO -1.48%) traded up more than 10% on Tuesday after the sporting goods retailer reported strong results and sounded an optimistic tone for 2021.

So what

Before markets opened on Tuesday, Academy said it earned $1.09 per share in its fiscal fourth quarter, easily beating the 52-cent consensus estimate. Revenue came in at $1.6 billion, slightly better than the $1.58 billion Wall Street had expected.

The company said it is seeing strong demand across all its markets and merchandise divisions, with comparable-store sales up 16.1% year over year. For the year, Academy reported net income of $308 million on revenue of $5.7 billion, compared to net income of $120 million on revenue of $4.8 billion in fiscal 2019.

A row of cleats on a sports field.

Image source: Getty Images.

"Through collaboration, dedication and innovation, the team produced remarkable results and delivered fun to millions of customers while laying the foundation for future success," CEO Ken Hicks said in a statement. "With our outstanding team, strong balance sheet and by investing in our key initiatives, such as power merchandising and e-commerce capabilities, Academy is very well positioned to continue to drive top and bottom line growth for the long term as well as enhance shareholder value."

Now what

Academy expects the momentum to slow slightly this year, with comparable-store sales expected to be within a range of down 2% to up 2%. But the bottom line still looks enticing.

The company said it expects full-year fiscal 2021 earnings per share of $2.70 to $2.95, well above the consensus $2.43 per-share estimate. That's good enough to have investors excited, and the stock is soaring higher as a result.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

Academy Sports and Outdoors, Inc. Stock Quote
Academy Sports and Outdoors, Inc.
$36.08 (-1.48%) $0.54

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning service.

Stock Advisor Returns
S&P 500 Returns

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 05/17/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.