What’s in store for the Academy Sports and Outdoors (ASO) first quarter earnings? – June 3, 2022

Sports and Outdoors Academy, Inc. (ASO Free Report) is set to release its first-quarter fiscal 2022 results on June 7. In the most recent quarter, the company’s earnings beat Zacks’ consensus estimate by 18.4%.

First quarter estimates

Zacks consensus estimate for fiscal first quarter net income is set at $1.40 per share, indicating a 25.9% decline from $1.89 reported in the prior year quarter .

The revenue consensus mark is set at $1.43 billion, suggesting a 9.4% decline from the year-ago quarter figure.

Factors to note

Academy Sports and Outdoors’ fiscal performance in the first quarter likely benefited from a focus on product innovation (such as Yellowstone apparel and outdoor pizza ovens), improved customer shopping experience customers (in-store and online), improved merchandise planning and allocation capabilities, increased target marketing and strengthened supply chain. The company’s customer base has grown. Partnerships with key national brands, such as Nike, adidas, Under Armour, Columbia and The North Face, are encouraging.

Progress toward building a stronger omnichannel business may have boosted the company’s performance in the fiscal first quarter. However, inflation, supply chain bottlenecks and the prospect of tough year-ago comparisons may have weighed on performance in the quarter to report. In fiscal 2022, the company expects comparable sales to decline in the range of 4% to 10%.

What the Zacks Model Reveals

Our proven model does not conclusively predict a revenue beat for Academy Sports and Outdoors this time around. The combination of a positive Earnings ESP and a Zacks rank of #1 (Strong Buy), 2 (Buy), or 3 (Hold) increases the odds of beating Earnings. But it is not the case here. You can discover the best stocks to buy or sell before they’re flagged with our earnings ESP filter.

Academy Sports and Outdoors has an ESP on earnings of 0.00% and a Zacks rank of #4 (sell).

You can see the full list of today’s Zacks #1 Rank stocks here.

Stocks are poised to beat earnings estimates

Here are a few stocks investors can consider as our model shows they have the right combination of elements to post a beat in earnings in the reportable quarter:

Wyndham Hotels & Resorts, Inc. (W.H. Free Report) currently has a +0.53% Earnings ESP and Zacks Rank #2. Zacks’ consensus estimate for quarterly earnings per share is pegged at 95 cents, flat year-over-year.

Wyndham Hotels & Resorts revenue is expected to decline year over year. Zacks’ consensus estimate for quarterly revenue is pegged at $346.6 million, indicating a 14.6% decline from the year-ago quarter. WH has a last four quarter earnings surprise of 36.1% on average.

Hilton Grand Vacations Inc. (heavyweight Free Report) currently has an Earnings ESP of +1.86% and a Zacks Rank #3.

Shares of Hilton Grand Vacations are up 1.7% over the past year. HGV’s earnings have missed the consensus mark three times in the past four quarters and beat it once, with the average surprise being 14.9%.

Chipotle Mexican Grill (GCM Free Report) currently has a +2.21% Earnings ESP and Zacks Rank #3. The company will likely see an increase in net income when it reports Q2 2022 numbers. Zacks’ consensus estimate for quarterly earnings per share of $9.06 suggests a 21.4% increase over the figure declared a year ago.

Chipotle Mexican Grill’s revenue is expected to improve year over year. Zacks’ consensus estimate for quarterly revenue is pegged at $2.24 billion, indicating growth of 18.6% from the prior year quarter. CMG has a surprise on earnings for the last four quarters of 9.3% on average.

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

James T. Quintero