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Vista Outdoor (VSTO) to Post Q1 Earnings: What to Expect?

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Vista Outdoor Inc. (VSTO - Free Report) is scheduled to report first-quarter fiscal 2022 results on Jul 29. In the last-reported quarter, the company delivered an earnings surprise of 54.6%.

How Are Estimates Placed?

The Zacks Consensus Estimate for fiscal first-quarter earnings per share (“EPS”) is pegged at 89 cents, suggesting growth of 74.5% from 51 cents reported in the year-ago quarter.

For revenues, the consensus mark is pegged at nearly $614.9 million, indicating an improvement of 28.3% from the prior-year reported figure.

Vista Outdoor Inc. Price and EPS Surprise

Vista Outdoor Inc. Price and EPS Surprise

Vista Outdoor Inc. price-eps-surprise | Vista Outdoor Inc. Quote

Let’s discuss factors that are likely to get reflected in the quarter to be reported.

Factors at Play

Vista Outdoor’s fiscal first-quarter results are likely to have benefited from increased demand in commercial ammunitions and outdoor recreation categories. Contributions from Remington and Hevi-Shot acquisitions, solid demand for shooting sports accessories from first-time firearm buyers, and growing ammo backlog are likely to get reflected in the fiscal first-quarter top line. During the prior-quarter earnings call, the company stated that it expects to generate more than $50 million in sales from the Remington acquisition in fiscal first-quarter 2022. It expects overall sales in the range of $600-$620 million and EPS in the range of 80-90 cents for the fiscal first quarter.

Increased emphasis on R&D, product innovation, digital marketing and e-commerce enhancements are likely to have driven the company’s performance in the to-be-reported quarter.

The Zacks Consensus Estimate for fiscal first-quarter revenues from Shooting Sports and Outdoor Products is pegged at $426 million and $189 million, indicating growth of 27.5% and 30.4%, respectively, from the prior- year quarter.

However, supply chain disruptions due to the pandemic, along with an increase in commodity, freight and product costs, are likely to weigh on margins during the fiscal-first quarter.

What Our Model Says

Our proven model does not conclusively predict an earnings beat for Vista Outdoor this time around. A stock needs to have a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) to beat earnings. But that's not the case here.

Earnings ESP: Vista Outdoor has an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: Vista Outdoor currently sports a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.

Stocks With Favorable Combinations

Here are some stocks from the Zacks Consumer Discretionary space that investors may consider, as our model shows that these have the right combination of elements to post an earnings beat this quarter:

Golden Entertainment, Inc. (GDEN - Free Report) sports a Zacks Rank #1 and has an Earnings ESP of +5.22%.

Churchill Downs Incorporated (CHDN - Free Report) has a Zacks Rank #2 and an Earnings ESP of +7.42%.

Caesars Entertainment, Inc. (CZR - Free Report) has a Zacks Rank #2 and an Earnings ESP of +265.6%.

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