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American Outdoor Brands (AOBC) Beats on Q1 Earnings & Sales

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American Outdoor Brands Corporation (AOBC - Free Report) reported first-quarter fiscal 2019 (ended Jul 31, 2018) results. The company’s adjusted earnings of 21 cents per share surpassed the Zacks Consensus Estimate of 12 cents by 75%. The reported figure made a significant improvement from the year-ago quarter’s level of 2 cents. The bottom line also exceeded management’s expectation of 10-14 cents per share in the reported quarter.

Excluding the one-time items, the company’s GAAP earnings came in at 14 cents per share against the loss of 4 cents incurred in the prior-year quarter.

Sales

American Outdoor Brands’ total sales were $139 million, which exceeded the Zacks Consensus Estimate of $138 million by 0.6%. The top-line figure also improved 7.6% from $129 million in the year-ago quarter.

Operational Highlights

In the quarter under review, total operating income came in at $13.5 million against operation loss of $3.2 million incurred in the comparable quarter last year.

Gross margin was 37.8% compared with 31.5% in first-quarter fiscal 2018.

American Outdoor Brands’ total operating expenses summed $38.9 million, down 11.1% from $43.8 million in the year-ago quarter. The downside can be primarily attributed to a 16.4% decline in general and administrative expenses.

Financial Condition

As of Jul 31, 2018, American Outdoor Brands’ cash and cash equivalents were $25.2 million compared with $48.9 million as of Apr 30, 2018.

Notes payable (net of current portion) totaled $153.8 million as of Jul 31, 2018, down from $180.3 million as of Apr 30, 2018.

Cash inflow from operating activities for the fiscal first quarter (ended Jul 31, 2018) was $10.6 million, while cash outflow from operating activities amounted to $34.5 million a year ago.

 Guidance

For second-quarter fiscal 2019, American Outdoor Brands expects adjusted earnings in the range of 11-15 cents per share. Revenues are anticipated in the $150-$160 million band.

The company has raised its outlook for fiscal 2019. It currently expects to generate adjusted earnings in the band of 62-66 cents per share compared with 40-50 cents per share projected earlier. Revenues are now envisioned between $620 miilion and $630 million for fiscal 2019 compared with earlier guidance range of $570-$600 million.

Zacks Rank

American Outdoor Brands has a Zacks Rank #3 (Hold).You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Other Defense Releases

HEICO Corporation (HEI - Free Report) reported third-quarter fiscal 2018 earnings of 49 cents per share, which surpassed the Zacks Consensus Estimate of 45 cents by 8.9%.

Boeing (BA - Free Report) reported adjusted earnings of $3.33 per share in second-quarter 2018, which exceeded the Zacks Consensus Estimate of $3.24 by 2.8%.

Lockheed Martin’s (LMT - Free Report) second-quarter 2018 adjusted earnings came in at $4.31 per share, outpacing the Zacks Consensus Estimate of $3.89 by 10.8%.

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