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American Outdoor Brands (AOBC) Beats on Q2 Earnings & Sales

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American Outdoor Brands Corporation reported second-quarter fiscal 2019 (ended Oct 31, 2018) financial results. The company’s adjusted earnings per share of 20 cents surpassed the Zacks Consensus Estimate of 13 cents by 53.8%. Further, the reported figure improved 81.8% from the year-ago quarter’s 11 cents.

Revenues

In the fiscal second quarter, American Outdoor Brands’ total sales were $161.7 million, beating the Zacks Consensus Estimate of $152 million by 6.4%. Moreover, the top line was up 9% from $148.4 million in the year-ago quarter.

Operational Highlights

Total operating income during the reported quarter was $11.3 million, up from $8 million in the year-ago quarter.

Gross margin for the quarter was 34.9% compared with 34.2% in second-quarter fiscal 2018. American Outdoor Brands’ total operating expenses were $45 million, up 5.1% from $42.8 million in the year-ago quarter. The increase in expenses was primarily due to higher research and development costs along with higher general and administrative expenses.

American Outdoor Brands Corporation Price, Consensus and EPS Surprise

 

American Outdoor Brands Corporation Price, Consensus and EPS Surprise | American Outdoor Brands Corporation Quote

Financial Condition

As of Oct 31, 2018, American Outdoor Brands’ cash and cash equivalents were $36.4 million compared with $48.9 million as of Apr 30, 2018.

Notes and loans payables (net) were $177.3 million as of Oct 31, 2018, down from $180.3 million as of Apr 30, 2018.

Cash inflow from operating activities in the first half of fiscal 2019 was $9 million against with cash outflow of $30.6 million a year ago.

Guidance

For third-quarter fiscal 2019, American Outdoor Brands expects adjusted earnings of 9-13 cents per share. Revenues are anticipated to be $155-$165 million.

The company raised its outlook for fiscal 2019. It currently expects to generate adjusted earnings of 69-73 cents per share compared with 62-66 cents projected earlier. Revenues are now envisioned between $625 million and $635 million for fiscal 2019 compared with the earlier guidance of $620-$630 million.

Zacks Rank

American Outdoor Brands currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Other Defense Releases

Hexcel Corporation (HXL - Free Report) reported third-quarter 2018 adjusted earnings of 80 cents per share, which was in line with the Zacks Consensus Estimate.

Textron Inc. (TXT - Free Report) reported third-quarter 2018 adjusted earnings from continuing operations of 61 cents per share, which missed the Zacks Consensus Estimate of 76 cents by 19.7%.

AAR Corp. (AIR - Free Report) reported first-quarter fiscal 2019 adjusted earnings of 54 cents per share, which surpassed the Zacks Consensus Estimate of 52 cents by 3.9%.

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