Academy Sports and Outdoors Stock Surges After Earnings Beat
Academy Sports and Outdoors (NASDAQ: ASO) stock surged over 10% in early trading after the company reported better-than-expected second-quarter earnings. Academy delivered a non-GAAP profit of $2.31 per share on revenue of $1.65 billion, exceeding Wall Street's expectations for both metrics. While same-store sales declined slightly by 0.4%, total sales growth reached positive 3% due to new store openings and e-commerce expansion. Profit margins improved significantly, driven in part by refunds from reversed Trump-era tariffs, contributing to a strong earnings performance with non-GAAP profit up 19%. The company also raised its full-year GAAP earnings guidance to between $6.05 and $6.45 per share, reflecting confidence in continued margin improvement. Looking ahead, Academy plans to open 11 new stores in the third quarter and maintains a sales growth forecast of 3% to 5%. With strong fundamentals and an attractive valuation relative to earnings projections, analysts view the stock favorably.
Tickers: $ASO