Academy Sports and Outdoors (NASDAQ:ASO) Shares Gap Down on Disappointing Earnings

Academy Sports and Outdoors, Inc. (NASDAQ:ASO)’s share price gapped down prior to trading on Tuesday following a dissappointing earnings announcement. The stock had previously closed at $56.51, but opened at $53.99. Academy Sports and Outdoors shares last traded at $52.0430, with a volume of 1,450,559 shares changing hands.

The company reported $1.97 EPS for the quarter, missing analysts’ consensus estimates of $2.03 by ($0.06). Academy Sports and Outdoors had a return on equity of 18.24% and a net margin of 6.27%.During the same period last year, the company earned $1.96 EPS. The business’s quarterly revenue was up 2.5% compared to the same quarter last year.

Academy Sports and Outdoors Increases Dividend

The firm also recently declared a quarterly dividend, which will be paid on Friday, April 10th. Investors of record on Friday, March 20th will be issued a $0.15 dividend. The ex-dividend date is Friday, March 20th. This is a positive change from Academy Sports and Outdoors’s previous quarterly dividend of $0.13. This represents a $0.60 annualized dividend and a yield of 1.1%. Academy Sports and Outdoors’s payout ratio is 9.51%.

Academy Sports and Outdoors News Summary

Here are the key news stories impacting Academy Sports and Outdoors this week:

• Positive Sentiment: Company announced operating momentum and shareholder-friendly actions: Q4 sales grew 2.5%, full-year sales +2.0%; opened 24 new stores in 2025 and plans 20–25 more in 2026; increased the quarterly dividend by 15%; issued 2026 guidance targeting 2%–5% annual sales growth. Academy Sports + Outdoors Reports Fourth Quarter and Fiscal 2025 Results
• Neutral Sentiment: Company reported Q4 EPS of $1.97 and revenue up 2.5% YoY; net margin 6.27% and ROE 18.24% — results show modest top-line recovery but mixed margin dynamics. View Press Release
• Neutral Sentiment: Street expectations were elevated heading into the print (some analysts had modeled ~ $2.06 EPS), setting a higher bar that increased sensitivity to any miss. Academy Sports And Outdoors Gears Up For Q4 Print; Here Are The Recent Forecast Changes From Wall Street’s Most Accurate Analysts
• Negative Sentiment: Q4 EPS of $1.97 missed the Zacks/consensus estimate of $2.03 (and below some pre-print analyst models), which is the immediate catalyst for downward pressure on the stock. Academy Sports and Outdoors, Inc. (ASO) Q4 Earnings and Revenues Lag Estimates
• Negative Sentiment: Market headlines framed the print as “downbeat” despite a broadly higher tape (Nasdaq strength), amplifying the sell reaction in ASO. Nasdaq Surges Over 100 Points; Academy Sports And Outdoors Posts Downbeat Earnings

Analysts Set New Price Targets

Several research firms have issued reports on ASO. Barclays boosted their price objective on shares of Academy Sports and Outdoors from $51.00 to $59.00 and gave the stock an “equal weight” rating in a research note on Wednesday, December 10th. UBS Group lifted their target price on shares of Academy Sports and Outdoors from $54.00 to $60.00 and gave the company a “neutral” rating in a report on Tuesday, March 10th. Bank of America increased their price target on Academy Sports and Outdoors from $55.00 to $58.00 and gave the company a “neutral” rating in a report on Wednesday, December 10th. Telsey Advisory Group reaffirmed an “outperform” rating and issued a $65.00 target price on shares of Academy Sports and Outdoors in a research report on Tuesday. Finally, Truist Financial set a $59.00 target price on Academy Sports and Outdoors in a report on Wednesday, January 14th. Ten investment analysts have rated the stock with a Buy rating and ten have given a Hold rating to the stock. Based on data from MarketBeat, Academy Sports and Outdoors has an average rating of “Moderate Buy” and an average target price of $60.22.

Institutional Inflows and Outflows

Several institutional investors have recently modified their holdings of ASO. Verity Asset Management Inc. grew its stake in Academy Sports and Outdoors by 0.6% during the 4th quarter. Verity Asset Management Inc. now owns 32,788 shares of the company’s stock valued at $1,638,000 after purchasing an additional 182 shares in the last quarter. Smartleaf Asset Management LLC raised its position in shares of Academy Sports and Outdoors by 12.1% in the 4th quarter. Smartleaf Asset Management LLC now owns 1,742 shares of the company’s stock valued at $86,000 after purchasing an additional 188 shares in the last quarter. Cullen Frost Bankers Inc. boosted its stake in shares of Academy Sports and Outdoors by 3.7% during the 4th quarter. Cullen Frost Bankers Inc. now owns 5,599 shares of the company’s stock valued at $280,000 after buying an additional 202 shares during the last quarter. PNC Financial Services Group Inc. boosted its stake in shares of Academy Sports and Outdoors by 2.8% during the 4th quarter. PNC Financial Services Group Inc. now owns 7,464 shares of the company’s stock valued at $373,000 after buying an additional 202 shares during the last quarter. Finally, CIBC Asset Management Inc grew its position in shares of Academy Sports and Outdoors by 3.5% during the fourth quarter. CIBC Asset Management Inc now owns 6,721 shares of the company’s stock worth $336,000 after buying an additional 228 shares in the last quarter.

Academy Sports and Outdoors Trading Down 7.6%

The firm has a market cap of $3.48 billion, a P/E ratio of 9.53, a price-to-earnings-growth ratio of 0.98 and a beta of 1.23. The business’s 50 day moving average is $58.01 and its 200-day moving average is $52.51. The company has a quick ratio of 0.32, a current ratio of 1.71 and a debt-to-equity ratio of 0.22.

About Academy Sports and Outdoors

Academy Sports and Outdoors is a leading specialty retailer of sporting goods and outdoor gear, operating more than 260 stores across the United States. Headquartered in Katy, Texas, the company offers a broad assortment of merchandise spanning athletic footwear and apparel, team sports equipment, camping and outdoor recreation products, hunting and fishing supplies, and fitness accessories. In addition to its brick-and-mortar footprint, Academy serves customers through its e-commerce platform, offering online ordering, in-store pickup, and home delivery options.

The company’s product portfolio includes seasonal and year-round categories designed to meet the needs of both casual enthusiasts and serious athletes.