American Outdoor Brands Hits the Bull’s-Eye in Q1

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When American Outdoor Brands Corp. (NASDAQ: AOBC) reported its fiscal first-quarter financial results after the markets closed on Thursday, the firearms company said that it had $0.21 in earnings per share (EPS) and $138.8 million in revenue. That compares with consensus estimates of $0.12 in EPS on revenue of $134.5 million, as well as the $0.02 in EPS and $129.02 million posted in the same period of last year.

Looking ahead to the fiscal third quarter, the company expects to see EPS in the range of $0.11 to $0.15 and revenue between $150 million and $160 million. Consensus estimates call for $0.08 in EPS and $143.26 million in revenue.

On the books, the company has $25.2 million in cash and cash equivalents, down from $48.9 million at the end of the previous fiscal year.

James Debney, president and CEO, commented:

In our Firearms segment, we introduced several new products and extensions under our Performance Center, M&P, and Thompson/Center brands. New products, which we define as products launched within the past twelve months, represented 28.5% of our firearm revenue and included strong sales of our M&P Shield 380 EZ pistol, which we launched in February.  That pistol has been extremely well received by our consumers and continues to gain momentum.  Our Outdoor Products & Accessories segment generated approximately 25% of our total revenue in the quarter, and Crimson Trace further expanded its product offerings in this segment with the launch of several new rail mounted lights.  Lastly, we achieved several milestones in the development of our new Logistics & Customer Services facility in Missouri, a strategic initiative that will ultimately allow us to lower our costs and better serve our customers.

Shares of American Outdoor Brands were last seen up about 29% at $12.60 on Friday, with a consensus analyst price target of $15.08 and a 52-week trading range of $8.32 to $17.31.