Earnings Per Share (EPS) of $1.96 exceeded the Zacks Consensus Estimate, showcasing the company’s ability to outperform market expectations.
Revenue reached approximately $1.68 billion, slightly above the estimated figures, despite a challenging macroeconomic environment.
Strategic initiatives, including launching the Jordan Brand and increasing the quarterly dividend by 18%, highlight confidence in financial stability and growth prospects.
Academy Sports and Outdoors, Inc. (NASDAQ: ASO) is a well-known retailer in the leisure and recreation products industry. The company offers a wide range of sporting goods and outdoor equipment. ASO competes with other major retailers in the sector, striving to maintain its market position through strategic initiatives and financial performance.
On March 20, 2025, ASO reported earnings per share (EPS) of $1.96, surpassing the Zacks Consensus Estimate of $1.82. This earnings surprise of 7.69% highlights the company’s ability to outperform market expectations. However, it’s important to note that this figure represents a decrease from the $2.21 EPS reported in the same quarter the previous year.
ASO’s revenue for the quarter was approximately $1.68 billion, slightly exceeding the estimated $1.675 billion. This revenue figure, while above expectations, marks a decline from the $1.79 billion reported a year ago. Despite this, the company has shown resilience in a challenging macroeconomic environment, as highlighted by its 3% decline in fourth-quarter comparable sales, which was an improvement from the previous quarter.
The company has taken strategic steps to drive growth, such as launching the Jordan Brand in 145 stores and online. Additionally, ASO increased its quarterly dividend by 18% per share, demonstrating confidence in its financial stability. The company’s financial metrics, including a price-to-earnings (P/E) ratio of 7.38 and a price-to-sales ratio of 0.55, suggest a relatively low valuation compared to its earnings and sales.
ASO’s financial health is further supported by an enterprise value to sales ratio of 0.71 and an enterprise value to operating cash flow ratio of 6.92. These figures indicate the company’s ability to generate cash relative to its enterprise value. With a debt-to-equity ratio of 0.67 and a current ratio of 1.57, ASO maintains a moderate level of debt and a good level of liquidity to cover its short-term liabilities.
