Academy Sports and Outdoors, Inc. (NASDAQ:ASO) Quarterly Earnings Insight

• Earnings per Share (EPS) is expected to be $0.91 for the quarter ending April 2025, reflecting a 15.7% decline year-over-year.
• Projected revenue is approximately $1.37 billion, a slight increase of 0.4% from the same quarter last year.
• Financial metrics highlight a P/E ratio of 7.10 and an earnings yield of 14.09%, indicating a potentially undervalued stock.

Academy Sports and Outdoors, Inc. (NASDAQ:ASO) is a well-known retailer specializing in sporting goods and outdoor recreational products. The company operates numerous stores across the United States, offering a wide range of products from sports equipment to outdoor gear. ASO competes with other major retailers like Dick's Sporting Goods and Bass Pro Shops in the sporting goods industry.

ASO is set to release its quarterly earnings on Tuesday, June 10, 2025. Wall Street estimates the earnings per share (EPS) to be $0.91, which aligns with the anticipated EPS for the quarter ending April 2025. This figure reflects a 15.7% decline compared to the previous year, as highlighted by Zacks Investment Research. Despite this decline, the revenue is projected to be approximately $1.37 billion, marking a slight increase of 0.4% from the same quarter last year.

The stability in EPS estimates over the past month indicates that analysts have maintained their initial forecasts. This stability is crucial as it often influences investor behavior and can impact the short-term price performance of the stock. Zacks Investment Research emphasizes the importance of considering any revisions to earnings projections before a company's earnings release, as these revisions can serve as a significant indicator of potential stock movements.

ASO's financial metrics provide further insight into its market valuation. The company has a price-to-earnings (P/E) ratio of approximately 7.10, indicating a relatively low valuation compared to its earnings. The price-to-sales ratio stands at 0.48, suggesting that the market values its sales at less than half of its current market price. Additionally, the enterprise value to sales ratio is 0.73, reflecting the company's total valuation in relation to its sales.

ASO's enterprise value to operating cash flow ratio is 8.24, which provides insight into how the market values the company's cash-generating ability. The earnings yield is 14.09%, offering a substantial return on investment relative to its share price. The debt-to-equity ratio is 0.89, indicating a moderate level of debt compared to its equity. Lastly, the current ratio is 1.78, suggesting that ASO has a strong ability to cover its short-term liabilities with its short-term assets.