Recreational products manufacturer American Outdoor Brands (NASDAQ: AOUT) will be reporting earnings this Thursday after market close. Here’s what to expect.
American Outdoor Brands beat analysts’ revenue expectations by 4% last quarter, reporting revenues of $58.51 million, up 9.5% year on year. It was a very strong quarter for the company, with an impressive beat of analysts’ EPS estimates and a solid beat of analysts’ EBITDA estimates.
Is American Outdoor Brands a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting American Outdoor Brands’s revenue to grow 4.7% year on year to $48.46 million, slowing from the 9.7% increase it recorded in the same quarter last year. Adjusted loss is expected to come in at -$0.11 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. American Outdoor Brands has a history of exceeding Wall Street’s expectations, beating revenue estimates every single time over the past two years by 6.2% on average.
Looking at American Outdoor Brands’s peers in the consumer discretionary segment, some have already reported their Q1 results, giving us a hint as to what we can expect. Smith & Wesson’s revenues decreased 11.6% year on year, missing analysts’ expectations by 7.6%, and FOX reported revenues up 26.8%, topping estimates by 4.3%. Smith & Wesson traded down 19.9% following the results while FOX was up 9.8%.
Read our full analysis of Smith & Wesson’s results here and FOX’s results here.
Investors in the consumer discretionary segment have had steady hands going into earnings, with share prices up 1.3% on average over the last month. American Outdoor Brands is down 6.4% during the same time and is heading into earnings with an average analyst price target of $17.75 (compared to the current share price of $11.33).
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