American Outdoor Brands Corporation reported second-quarter fiscal 2018 (ended Oct 31, 2017) financial results. The company’s adjusted earnings per share of 11 cents surpassed the Zacks Consensus Estimate of 7 cents by 57.1%. However, the reported figure declined 83.8% from the year-ago level of 68 cents.
Revenues
In the fiscal second quarter, American Outdoor Brands’ total sales were $148.4 million, beating the Zacks Consensus Estimate of $140 million by 6%. However, the top line was down 36.4% from $233.5 million in the year-ago quarter.
Operational Highlights
Total operating income during the quarter was $8 million, down from $52.2 million in the year-ago quarter.
Gross margin for the quarter was 34.2% compared with 41.8% in second-quarter fiscal 2017.
American Outdoor Brands’ total operating expenses were $42.8 million, down 5.8% from $45.5 million in the year-ago quarter. The downside was owing to 18.2% decline in general and administrative expenses.
Financial Condition
As of Oct 31, 2017, American Outdoor Brands’ cash and cash equivalents were $68.2 million compared with $61.5 million as of Apr 30, 2017.
Notes payable (net) was $208 million as of Oct 31, 2017, down from $210.7 million as of Apr 30, 2017.
Cash outflow from operating activities in the first half of fiscal 2018 was $30.7 million compared with inflow of $61.4 million a year ago.
Guidance
American Outdoor Brands expects third-quarter fiscal 2018 non-GAAP earnings in the range of 7-10 cents per share. The company anticipates its revenues to be in the $170-$180 million band.
For fiscal 2018, the company provided its non-GAAP earnings expectation in the band of 57-67 cents per share compared with $1.04-$1.24, projected earlier. Revenues are anticipated in the range of $650-$675 million for the same period compared with $700-$740, guided earlier.
Zacks Rank
American Outdoor Brands has a Zacks Rank #4 (Sell).
Peer Releases
Triumph Group Inc.’s (TGI - Free Report) adjusted earnings from continuing operations in second-quarter fiscal 2018 (ended Sep 30) came in at 52 cents per share, reflecting a decline of 48% from $1.00 per share a year ago. Moreover, the company carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here
Orbital ATK, Inc. posted third-quarter 2017 adjusted earnings of $1.75 per share, beating the Zacks Consensus Estimate of $1.56 by 12.2%. The company also carries a Zacks Rank #2 (Buy).
Raytheon Company reported third-quarter 2017 earnings from continuing operations of $1.97 per share, surpassing the Zacks Consensus Estimate of $1.90 by 3.7%. Moreover, the company carries a Zacks Rank #3.
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American Outdoor Brands Corporation reported second-quarter fiscal 2018 (ended Oct 31, 2017) financial results. The company’s adjusted earnings per share of 11 cents surpassed the Zacks Consensus Estimate of 7 cents by 57.1%. However, the reported figure declined 83.8% from the year-ago level of 68 cents.
Revenues
In the fiscal second quarter, American Outdoor Brands’ total sales were $148.4 million, beating the Zacks Consensus Estimate of $140 million by 6%. However, the top line was down 36.4% from $233.5 million in the year-ago quarter.
Operational Highlights
Total operating income during the quarter was $8 million, down from $52.2 million in the year-ago quarter.
Gross margin for the quarter was 34.2% compared with 41.8% in second-quarter fiscal 2017.
American Outdoor Brands’ total operating expenses were $42.8 million, down 5.8% from $45.5 million in the year-ago quarter. The downside was owing to 18.2% decline in general and administrative expenses.
Financial Condition
As of Oct 31, 2017, American Outdoor Brands’ cash and cash equivalents were $68.2 million compared with $61.5 million as of Apr 30, 2017.
Notes payable (net) was $208 million as of Oct 31, 2017, down from $210.7 million as of Apr 30, 2017.
Cash outflow from operating activities in the first half of fiscal 2018 was $30.7 million compared with inflow of $61.4 million a year ago.
Guidance
American Outdoor Brands expects third-quarter fiscal 2018 non-GAAP earnings in the range of 7-10 cents per share. The company anticipates its revenues to be in the $170-$180 million band.
For fiscal 2018, the company provided its non-GAAP earnings expectation in the band of 57-67 cents per share compared with $1.04-$1.24, projected earlier. Revenues are anticipated in the range of $650-$675 million for the same period compared with $700-$740, guided earlier.
Zacks Rank
American Outdoor Brands has a Zacks Rank #4 (Sell).
Peer Releases
Triumph Group Inc.’s (TGI - Free Report) adjusted earnings from continuing operations in second-quarter fiscal 2018 (ended Sep 30) came in at 52 cents per share, reflecting a decline of 48% from $1.00 per share a year ago. Moreover, the company carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here
Orbital ATK, Inc. posted third-quarter 2017 adjusted earnings of $1.75 per share, beating the Zacks Consensus Estimate of $1.56 by 12.2%. The company also carries a Zacks Rank #2 (Buy).
Raytheon Company reported third-quarter 2017 earnings from continuing operations of $1.97 per share, surpassing the Zacks Consensus Estimate of $1.90 by 3.7%. Moreover, the company carries a Zacks Rank #3.
Wall Street’s Next Amazon
Zacks EVP Kevin Matras believes this familiar stock has only just begun its climb to become one of the greatest investments of all time. It’s a once-in-a-generation opportunity to invest in pure genius.
Click for details >>
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
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