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Vista Outdoor (VSTO) to Post Q2 Earnings: What's in Store?
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Vista Outdoor Inc. (VSTO - Free Report) is scheduled to report second-quarter fiscal 2022 results on Nov 4, before the opening bell.
In the last reported quarter, earnings and revenues topped the Zacks Consensus Estimate by 95.5% and 7.8%, respectively. The company’s top and bottom lines grew 38% and 241.2%, respectively, on a year-over-year basis.
Trend in Estimate Revision
The Zacks Consensus Estimate for fiscal second-quarter earnings per share (“EPS”) is pegged at $1.77, suggesting growth of 60.9% from $1.10 reported in the year-ago quarter.
For revenues, the consensus mark is pegged at $723.34 million, indicating an improvement of 25.8% from the prior-year reported figure.
Factors at Play
Vista Outdoor’s fiscal second-quarter results are likely to benefit from increased demand in commercial ammunition and outdoor recreation categories. Contributions from Remington and Hevi-Shot acquisitions, solid demand for shooting sports accessories from first-time firearm buyers as well as growing ammo backlog are likely to get reflected in the fiscal second-quarter top line. Also, increased emphasis on research and development, product innovation, digital marketing and e-commerce enhancements are likely to have driven the company’s performance in the to-be-reported quarter.
During the fiscal first-quarter earnings call, Vista Outdoor stated that it expects to generate sales in the range of $710-$730 million and EPS in the range of $1.70-$1.80. The given assumptions include benefits from the recent acquisitions of QuietKat and Venor as well as HEVI-Shot and Remington.
The Zacks Consensus Estimate for fiscal second-quarter Outdoor Products and Shooting Sports’ revenues is pegged at $212 million and $505 million, indicating growth of 8.7% and 32.9%, respectively, from the prior-year quarter.
Within the Outdoor Products’ umbrella, the consensus mark for Action Sports’ revenues is $116 million, indicating growth of more than 19% from the prior-year quarter. The same for Outdoor Recreation is $100 million, suggesting a 2% year-over-year improvement. Within Shooting Sports, the consensus estimate for Ammunition is pegged at $378 million, implying a 38.9% year-over-year rise. The same for Hunting and Shooting is pegged at $129 million, which suggests a 20% increase from a year ago.
Yet, supply chain disruptions due to the pandemic, and an increase in distribution, freight and product costs are likely to have weighed on margins. That said, strong consumer demand, commercial pricing improvement, mix and operating efficiencies are likely to have aided fiscal second-quarter earnings.
The Zacks Consensus Estimate for fiscal second-quarter Outdoor Products and Shooting Sports’ operating profit or EBIT is pegged at $31.2 million and $133 million, pointing to 18.2% and 89.2% year-over-year growth, respectively.
What Our Model Says
Our proven model does not conclusively predict an earnings beat for Vista Outdoor this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that's not the case here.
Earnings ESP: It 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.
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 in the to-be-reported quarter:
MGM Resorts International (MGM - Free Report) holds a Zacks Rank #3 and has an Earnings ESP of +348.39%.
Sonos, Inc. (SONO - Free Report) sports a Zacks Rank #1 and an Earnings ESP of +200.00%.
iHeartMedia, Inc. (IHRT - Free Report) has a Zacks Rank #3 and an Earnings ESP of +75.44%.
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Vista Outdoor (VSTO) to Post Q2 Earnings: What's in Store?
Vista Outdoor Inc. (VSTO - Free Report) is scheduled to report second-quarter fiscal 2022 results on Nov 4, before the opening bell.
In the last reported quarter, earnings and revenues topped the Zacks Consensus Estimate by 95.5% and 7.8%, respectively. The company’s top and bottom lines grew 38% and 241.2%, respectively, on a year-over-year basis.
Trend in Estimate Revision
The Zacks Consensus Estimate for fiscal second-quarter earnings per share (“EPS”) is pegged at $1.77, suggesting growth of 60.9% from $1.10 reported in the year-ago quarter.
Vista Outdoor Inc. Price and EPS Surprise
Vista Outdoor Inc. price-eps-surprise | Vista Outdoor Inc. Quote
For revenues, the consensus mark is pegged at $723.34 million, indicating an improvement of 25.8% from the prior-year reported figure.
Factors at Play
Vista Outdoor’s fiscal second-quarter results are likely to benefit from increased demand in commercial ammunition and outdoor recreation categories. Contributions from Remington and Hevi-Shot acquisitions, solid demand for shooting sports accessories from first-time firearm buyers as well as growing ammo backlog are likely to get reflected in the fiscal second-quarter top line. Also, increased emphasis on research and development, product innovation, digital marketing and e-commerce enhancements are likely to have driven the company’s performance in the to-be-reported quarter.
During the fiscal first-quarter earnings call, Vista Outdoor stated that it expects to generate sales in the range of $710-$730 million and EPS in the range of $1.70-$1.80. The given assumptions include benefits from the recent acquisitions of QuietKat and Venor as well as HEVI-Shot and Remington.
The Zacks Consensus Estimate for fiscal second-quarter Outdoor Products and Shooting Sports’ revenues is pegged at $212 million and $505 million, indicating growth of 8.7% and 32.9%, respectively, from the prior-year quarter.
Within the Outdoor Products’ umbrella, the consensus mark for Action Sports’ revenues is $116 million, indicating growth of more than 19% from the prior-year quarter. The same for Outdoor Recreation is $100 million, suggesting a 2% year-over-year improvement. Within Shooting Sports, the consensus estimate for Ammunition is pegged at $378 million, implying a 38.9% year-over-year rise. The same for Hunting and Shooting is pegged at $129 million, which suggests a 20% increase from a year ago.
Yet, supply chain disruptions due to the pandemic, and an increase in distribution, freight and product costs are likely to have weighed on margins. That said, strong consumer demand, commercial pricing improvement, mix and operating efficiencies are likely to have aided fiscal second-quarter earnings.
The Zacks Consensus Estimate for fiscal second-quarter Outdoor Products and Shooting Sports’ operating profit or EBIT is pegged at $31.2 million and $133 million, pointing to 18.2% and 89.2% year-over-year growth, respectively.
What Our Model Says
Our proven model does not conclusively predict an earnings beat for Vista Outdoor this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that's not the case here.
Earnings ESP: It 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 carries a Zacks Rank #2. 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 in the to-be-reported quarter:
MGM Resorts International (MGM - Free Report) holds a Zacks Rank #3 and has an Earnings ESP of +348.39%.
Sonos, Inc. (SONO - Free Report) sports a Zacks Rank #1 and an Earnings ESP of +200.00%.
iHeartMedia, Inc. (IHRT - Free Report) has a Zacks Rank #3 and an Earnings ESP of +75.44%.