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American Outdoor Gears Up for Q2 Earnings: What's in the Offing?

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American Outdoor Brands, Inc. (AOUT - Free Report) is scheduled to report second-quarter fiscal 2025 results on Dec. 5, after the closing bell. In the last reported quarter, AOUT’s earnings beat the Zacks Consensus Estimate by 300%.

AOUT’s Q2 Estimates

The Zacks Consensus Estimate for second-quarter fiscal 2025 earnings is pegged at 22 cents per share, suggesting a 12% year-over-year decline. Estimate revisions have been unchanged in the past 30 days. The consensus mark for revenues is pegged at $53.3 million, implying an 8% year-over-year decrease.

Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar.

Factors to Note Ahead of AOUT’s Q2 Release

The company's results in the quarter-to-be-reported are likely to be hurt by persistent headwinds in the shooting sports category. Broader challenges in the market for firearms and related accessories, caused by reduced consumer demand, are likely to have hurt the company’s performance. A cautious consumer spending environment is likely to have hurt outdoor cooking and rugged outdoor product performance in second-quarter fiscal 2025.

Operating expenses are expected to have risen slightly, due to increased selling and distribution costs associated with seasonal inventory builds. This could have weighed on profitability. The retail landscape remains competitive, with some partners still managing inventory imbalances. This environment, coupled with cautious consumer behavior, might have forced American Outdoor Brands to engage in promotions, potentially impacting margins.

American Outdoor Brands, Inc. Price and EPS Surprise

 

American Outdoor Brands, Inc. Price and EPS Surprise

American Outdoor Brands, Inc. price-eps-surprise | American Outdoor Brands, Inc. Quote

What Our Model Says About AOUT

Our proven model does not conclusively predict an earnings beat for American 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. This is not the case here.

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

AOUT’s Zacks Rank: AOUT carries a Zacks Rank #3 at present.

Stocks to Consider

Here we present three stocks you may want to consider as our model shows that these have the right combination of elements to post an earnings beat this season.

Carnival Corporation & plc (CCL - Free Report) currently has an Earnings ESP of +17.45% and a Zacks Rank of 2. You can see the complete list of today’s Zacks #1 Rank stocks here.

CCL’s earnings for the to-be-reported quarter are expected to increase 200%. It reported better-than-expected earnings in each of the trailing four quarters, with an average earnings surprise of 318.1% .

MGM Resorts International (MGM - Free Report) has an Earnings ESP of +2.83% and a Zacks Rank of 3 at present.

MGM reported better-than-expected earnings in three of the trailing four quarters and missed the other, the average surprise being 26.2%.

Choice Hotels International, Inc. (CHH - Free Report) has an Earnings ESP of +1.76% and currently flaunts a Zacks Rank of 1.

CHH’s earnings for the to-be-reported quarter are expected to increase 6.3%. It reported better-than-expected earnings in three of the trailing four quarters and missed the other, the average surprise being 8.3%

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