What happened
Shares of Academy Sports and Outdoors (ASO 3.19%) 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.
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"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.
