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American Outdoor Brands (AOBC) Q2 Earnings Beat, Down Y/Y

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American Outdoor Brands Corporation (AOBC - Free Report) 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. (OA - Free Report) 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 (RTN - Free Report) 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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