These Analysts Slash Their Forecasts On Academy Sports And Outdoors After Weak Q1 Earnings

Academy Sports And Outdoors Inc ASO reported worse-than-expected first-quarter FY24 earnings on Tuesday.

The sports goods retailer reported a first-quarter sales decline of 1.4% year-on-year to $1.36 billion, missing the analyst consensus estimate of $1.38 billion. Comparable sales declined 5.7%. Adjusted EPS of $1.08 missed the analyst consensus estimate of $1.24, according to data from Benzinga Pro.

"As expected, our first quarter results reflect that our customers remain under pressure in the current economic environment," said CEO Steve Lawrence.

Academy reiterated its previous sales and net income guidance for fiscal 2024, while updating its EPS forecast to reflect the share repurchase activity completed in the first quarter.

Academy expects FY24 sales of $6.070 billion – $6.350 billion versus the consensus estimate of $6.24 billion. ASO raised FY24 EPS outlook from $5.90 – $6.90 to $6.05 – $7.05, against the estimate of $6.82. It sees comparable sales of (4)% to 1%. In 2024, the company plans to open 15-17 new stores.

Academy Sports And Outdoors shares fell 3.2% to close at $51.69 on Tuesday.

These analysts made changes to their price targets on Academy Sports And Outdoors after the company reported quarterly results.

• Telsey Advisory Group cut the price target on Academy Sports And Outdoors from $75 to $65. Telsey Advisory Group analyst Joseph Feldman maintained an Outperform rating.
• UBS lowered Academy Sports And Outdoors price target from $81 to $58. UBS analyst Michael Lasser downgraded the stock from Buy to Neutral.
• Wells Fargo cut the price target on Academy Sports And Outdoors from $80 to $55. Wells Fargo analyst Will Gaertner downgraded the stock from Overweight to Equal-Weight.
• Baird slashed the price target on Academy Sports And Outdoors from $80 to $68. Baird analyst Justin Kleber maintained an Outperform rating.
• TD Cowen cut the price target on Academy Sports And Outdoors from $82 to $58. TD Cowen analyst John Kernan maintained a Buy rating.
• Morgan Stanley cut the price target on Academy Sports And Outdoors from $65 to $60. Morgan Stanley analyst Simeon Gutman maintained an Equal-Weight rating.

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