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

Shares of Academy Sports and Outdoors, Inc. (NASDAQ:ASO) 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 earnings per share for the quarter, missing the consensus estimate 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%.The company’s revenue was up 2.5% on a year-over-year basis. During the same quarter in the prior year, the company posted $1.96 earnings per share.

Academy Sports and Outdoors Increases Dividend

The company also recently disclosed 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. This is an increase 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%. The ex-dividend date of this dividend is Friday, March 20th. Academy Sports and Outdoors’s dividend payout ratio is presently 9.51%.

Key Stories Impacting Academy Sports and Outdoors

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

A number of research firms have commented on ASO. Jefferies Financial Group reaffirmed a “buy” rating and set a $65.00 target price on shares of Academy Sports and Outdoors in a report on Friday, January 2nd. Truist Financial set a $59.00 price target on Academy Sports and Outdoors in a research report on Wednesday, January 14th. Weiss Ratings reaffirmed a “hold (c-)” rating on shares of Academy Sports and Outdoors in a report on Monday, December 29th. Barclays boosted their target price on shares of Academy Sports and Outdoors from $51.00 to $59.00 and gave the company an “equal weight” rating in a research note on Wednesday, December 10th. Finally, Telsey Advisory Group reissued an “outperform” rating and set a $65.00 target price on shares of Academy Sports and Outdoors in a report on Tuesday. Ten research analysts have rated the stock with a Buy rating and ten have assigned a Hold rating to the stock. Based on data from MarketBeat, the stock currently has a consensus rating of “Moderate Buy” and an average target price of $60.22.

Hedge Funds Weigh In On Academy Sports and Outdoors

Institutional investors and hedge funds have recently added to or reduced their stakes in the business. Salomon & Ludwin LLC increased its position in Academy Sports and Outdoors by 139.8% in the 4th quarter. Salomon & Ludwin LLC now owns 482 shares of the company’s stock valued at $26,000 after acquiring an additional 281 shares during the period. Nisa Investment Advisors LLC boosted its position in Academy Sports and Outdoors by 32.6% during the 3rd quarter. Nisa Investment Advisors LLC now owns 1,025 shares of the company’s stock worth $51,000 after acquiring an additional 252 shares during the period. Huntington National Bank grew its stake in shares of Academy Sports and Outdoors by 47.3% in the third quarter. Huntington National Bank now owns 1,015 shares of the company’s stock worth $51,000 after purchasing an additional 326 shares in the last quarter. Bayforest Capital Ltd bought a new position in shares of Academy Sports and Outdoors in the fourth quarter worth $51,000. Finally, Hantz Financial Services Inc. increased its holdings in shares of Academy Sports and Outdoors by 117.8% during the third quarter. Hantz Financial Services Inc. now owns 1,113 shares of the company’s stock valued at $56,000 after purchasing an additional 602 shares during the period.

Academy Sports and Outdoors Trading Down 7.6%

The firm has a market capitalization of $3.48 billion, a P/E ratio of 9.53, a PEG ratio of 0.98 and a beta of 1.23. The business’s 50 day moving average is $58.01 and its two-hundred 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.

Academy Sports and Outdoors Company Profile

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.