Recreational products manufacturer American Outdoor Brands (NASDAQ: AOUT) will be reporting earnings this Tuesday afternoon. Here’s what to look for.
American Outdoor Brands missed analysts’ revenue expectations by 17% last quarter, reporting revenues of $29.7 million, down 28.7% year on year. It was a disappointing quarter for the company, with a significant miss of analysts’ revenue estimates and a significant miss of analysts’ EBITDA estimates.
Is American Outdoor Brands a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, analysts are expecting American Outdoor Brands’s revenue to decline 15.5% year on year to $50.92 million, a reversal from the 4% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.20 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 only missed Wall Street’s revenue estimates once over the last two years, exceeding top-line expectations by 6.3% on average.
Looking at American Outdoor Brands’s peers in the leisure products segment, some have already reported their Q3 results, giving us a hint as to what we can expect. Smith & Wesson’s revenues decreased 3.9% year on year, beating analysts’ expectations by 0.8%, and Harley-Davidson reported revenues up 16.5%, topping estimates by 2.8%. Smith & Wesson traded up 23% following the results while Harley-Davidson was down 6.2%.
Read our full analysis of Smith & Wesson’s results here and Harley-Davidson’s results here.
There has been positive sentiment among investors in the leisure products segment, with share prices up 3.4% on average over the last month. American Outdoor Brands is up 5.5% during the same time and is heading into earnings with an average analyst price target of $15.25 (compared to the current share price of $7.12).
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