American Outdoor Brands Corporation (NASDAQ: AOBC) is engage within the design, manufacture, and sale of firearms and accessories. Shares of the firearm manufacturer jumped 43.60%, during trading on Friday, August 31, 2018. Over the past three months, American Outdoor Brands Corporation has seen average daily volume of 1.46 million shares. However, volume of 25.65 million shares or dollar volume of $359.87 million, exchanged hands during Friday’s trading.
Shares of American Outdoor Brands Corporation rallied on Friday, after the company reported first quarter earnings results, which beat earnings and sales estimates. Wall Street analysts were estimating earnings per share of $0.12 and revenue to come in around $138 million. On Friday, the company reported adjusted earnings per share of $0.21 on revenue of $139 million. Excluding one-time costs, the GAAP earnings results still came in at $0.14. Management issued strong guidance for the second quarter, estimating earnings per share to fall between $0.11-0.15 and revenues to come in between $150-160 million. For fiscal 2019, American Outdoor Brands Corporation estimates adjusted earnings per share results between $0.62-0.63 and revenues between $620-630 million. Here is the full press release detailing of the first quarter earnings release:
American Outdoor Brands Corporation:
American Outdoor Brands Corporation AOBC reported first-quarter fiscal 2019 (ended Jul 31, 2018) results. The company’s adjusted earnings of 21 cents per share surpassed the Zacks Consensus Estimate of 12 cents by 75%. The reported figure made a significant improvement from the year-ago quarter’s level of 2 cents. The bottom line also exceeded management’s expectation of 10-14 cents per share in the reported quarter.
Excluding the one-time items, the company’s GAAP earnings came in at 14 cents per share against the loss of 4 cents incurred in the prior-year quarter.
Sales
American Outdoor Brands’ total sales were $139 million, which exceeded the Zacks Consensus Estimate of $138 million by 0.6%. The top-line figure also improved 7.6% from $129 million in the year-ago quarter.
American Outdoor Brands Corporation Price, Consensus and EPS Surprise
American Outdoor Brands Corporation Price, Consensus and EPS Surprise | American Outdoor Brands Corporation Quote
Operational Highlights
In the quarter under review, total operating income came in at $13.5 million against operation loss of $3.2 million incurred in the comparable quarter last year.
Gross margin was 37.8% compared with 31.5% in first-quarter fiscal 2018.
American Outdoor Brands’ total operating expenses summed $38.9 million, down 11.1% from $43.8 million in the year-ago quarter. The downside can be primarily attributed to a 16.4% decline in general and administrative expenses.
Financial Condition
As of Jul 31, 2018, American Outdoor Brands’ cash and cash equivalents were $25.2 million compared with $48.9 million as of Apr 30, 2018.
Notes payable (net of current portion) totaled $153.8 million as of Jul 31, 2018, down from $180.3 million as of Apr 30, 2018.
Cash inflow from operating activities for the fiscal first quarter (ended Jul 31, 2018) was $10.6 million, while cash outflow from operating activities amounted to $34.5 million a year ago.
Guidance
For second-quarter fiscal 2019, American Outdoor Brands expects adjusted earnings in the range of 11-15 cents per share. Revenues are anticipated in the $150-$160 million band.
The company has raised its outlook for fiscal 2019. It currently expects to generate adjusted earnings in the band of 62-66 cents per share compared with 40-50 cents per share projected earlier. Revenues are now envisioned between $620 milion and $630 million for fiscal 2019 compared with earlier guidance range of $570-$600 million.
