Academy Sports and Outdoors, Inc. (ASO) Surpasses Q3 Earnings Estimates

Core Insights - Academy Sports and Outdoors, Inc. (ASO) reported quarterly earnings of $1.14 per share, exceeding the Zacks Consensus Estimate of $1.07 per share, and up from $0.98 per share a year ago, representing an earnings surprise of +6.54% [1] - The company posted revenues of $1.38 billion for the quarter ended October 2025, which was 1.2% below the Zacks Consensus Estimate, and an increase from $1.34 billion year-over-year [2] - The stock has underperformed the market, losing about 15.1% since the beginning of the year compared to the S&P 500's gain of 16.4% [3] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $2.06 on revenues of $1.75 billion, and for the current fiscal year, it is $5.78 on revenues of $6.1 billion [7] - The estimate revisions trend for Academy Sports and Outdoors was mixed ahead of the earnings release, resulting in a Zacks Rank 3 (Hold) for the stock, indicating expected performance in line with the market [6] Industry Context - The Leisure and Recreation Products industry, to which Academy Sports and Outdoors belongs, is currently in the top 35% of over 250 Zacks industries, suggesting a favorable outlook compared to lower-ranked industries [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [5]