What Happened:Shares of sporting goods retailer Academy Sports & Outdoor (NASDAQ:ASO) fell 11.6% in the pre-market session after the company reported fourth-quarter results that fell short of Wall Street's revenue and EPS expectations. That's not all; guidance was underwhelming as the company's full-year revenue and earnings forecast missed analysts' expectations. Management acknowledged the poor growth in 2023, attributing the weakness to a "choppy macro environment." To accelerate growth in 2024, the company highlighted the focus on growing new stores and optimizing its supply chain structure. Overall, this was a weaker quarter for the company, with markets likely yet to be convinced by the updated narrative.
The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks. Is now the time to buy Academy Sports? Find out by reading the original article on StockStory.
What is the market telling us:Academy Sports's shares are somewhat volatile and over the last year have had 11 moves greater than 5%. But moves this big are very rare even for Academy Sports and that is indicating to us that this news had a significant impact on the market's perception of the business.
Academy Sports is down 2.6% since the beginning of the year, and at $65.68 per share it is trading 12.6% below its 52-week high of $75.16 from February 2024. Investors who bought $1,000 worth of Academy Sports's shares at the IPO in October 2020 would now be looking at an investment worth $5,054.