Investing

Earnings Previews: Academy Sports, Chico's FAS, Marvell Technology, Stitch Fix

Academy Sports

Sporting gear retailer Academy Sports and Outdoors Inc. (NASDAQ: ASO) reports first-quarter fiscal 2022 results before markets open on Tuesday. Since its initial public offering last October, the stock has added just over 180%, about half of which has come in 2021. Fourth-quarter 2021 net income soared by 97% year over year. The company’s IPO is the third best in the past 12 months, with a total return of 181%.

Of nine brokerages covering the firm, all rate the stock a Buy (six) or Strong Buy. At around $36.40 per share and with a consensus price target of $38.00, upside potential is about 4.2%. At the high price target of $44.00, upside potential is about 21%.

Analysts expect Academy Sports to report quarterly EPS of $0.83 on sales of $1.51 billion. There is no comparable data for last year.

The stock trades at a multiple of nearly 11.0 times expected 2022 EPS and 10.1 times estimated 2023 earnings. The stock’s post-IPO range is $12.05 to $37.90, and the high was posted on Wednesday. The average daily trading volume is about 2.5 million shares.

Chico’s

Women’s retail operator Chico’s FAS Inc. (NYSE: CHS) also will report first-quarter 2022 first thing Tuesday. Shares dropped by nearly 57% last year but have jumped by more than 230% so far in 2021. Since January of 2020, the stock is up about 45%, and it didn’t reach the breakeven point between March 2, 2020, and May 11 of this year. Over the past 12 months, however, shares are up 240%.

Most analysts (eight of 12) rate the stock a Hold despite its strong gains of the past 12 months. The stock has streaked past its consensus price target of $3.75 and its high price target of $5.00 to trade at around $5.35. There’s generally no upside to buying any stock in this situation.

Analysts expect Chico’s to post a per-share loss of $0.17 for the quarter on sales of $320.65 million. The company lost $1.55 per share in the first quarter of last year, so the expectations are a huge improvement. Revenue is barely better than flat, however, so margins are going to have to do the heavy lifting.

Chico’s is not expected to post a profit this year. Its shares trade at a multiple of 23.2 times estimated 2023 earnings. The stock’s 52-week range is $0.91 to $5.72. The average daily trading volume is about 1.9 million shares.