Academy Sports and Outdoor (ASO) rallies 13% on beat-and-raise results

August 31, 2023 8:42 AM EDT

Academy Sports and Outdoors (NASDAQ: ASO) shares surged as much as 13% in early Thursday trade after the company reported better-than-expected profit figures for its second quarter and raised its full-year EPS outlook.

EPS of $2.09 came in better than projected $2.02. The company's revenue for the quarter amounted to $1.58 billion, which matched the consensus estimate of $1.58 billion.

In terms of comparable sales, Academy Sports and Outdoors experienced a decline of -7.5%, which was better than the estimated decline of -8.6%.

Looking ahead, Academy Sports and Outdoors anticipates an EPS ranging from $6.95 to $7.65, which is slightly higher than the consensus estimate of $6.92.

In terms of revenue, the company projects a range of $6.175 billion to $6.365 billion for the fiscal year, slightly below the consensus estimate of $6.23 billion.

"Our operating margin improved 420 basis points from the first quarter, driven by higher gross margin, sequential improvement in shrink as a rate to sales and disciplined expense management," the management said in the earnings release.

By Senad Karaahmetovic

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