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American Outdoor Brands (AOBC) to Post Q1 Earnings: What's Up?

Zacks Equity Research

American Outdoor Brands Corporation AOBC is scheduled to report first-quarter fiscal 2020 results on Aug 29, after the closing bell.

In the last reported quarter, the company’s earnings beat the Zacks Consensus Estimate by 52.9%. The bottom line also outpaced the consensus mark in the trailing four quarters, the average being 53.8%.

Q1 Expectations

The Zacks Consensus Estimate for first-quarter earnings is pegged at 8 cents. In the year-ago quarter, the company had reported earnings of 21 cents per share. Over the past 30 days, the company’s earnings estimates have moved north by a penny. For quarterly revenues, the consensus mark is pinned at nearly $214 million, suggesting a 10.7% decline from the prior-year quarter figure.

Let’s delve deeper into factors that are likely to influence American Outdoor Brands’ first-quarter fiscal 2020 results.

Factors at Play

American Outdoor Brands top line in the quarter to be reported is likely to be impacted by decline in consumer demand for both firearms and the accessories that includes lights, lasers and scopes. However, the launch of 106 new firearm skus and Performance Center M&P 380 Shield EZ bode well for the company. Notably, the financial impact of the launch of Performance Center M&P 380 Shield EZ can be seen in 2020.

American Outdoor Brands is also strongly focusing on innovations and expansion of addressable market to support its organic growth strategy.

Nonetheless, increase in operating expenses remains a concern for the company. In fourth-quarter fiscal 2019, American Outdoor Brands’ operating expenses totaled $48.1 million, up 17.3% from $41 million in the prior-year quarter. Operating expenses were driven by rise in variable compensation expenses as well as increased depreciation relating to the company’s new Missouri campus.

American Outdoor Brands Corporation Price, Consensus and EPS Surprise

American Outdoor Brands Corporation Price, Consensus and EPS Surprise
American Outdoor Brands Corporation Price, Consensus and EPS Surprise

American Outdoor Brands Corporation price-consensus-eps-surprise-chart | American Outdoor Brands Corporation Quote

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What Does the Zacks Model Unveil?

Our proven model does not show that American Outdoor Brands is likely to beat earnings first-quarter fiscal 2020. This is because a stock needs to have both — a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) — for this to happen. Zacks Rank #4 (Sell) or 5 (Strong Sell) stocks are best avoided, especially if they have a negative Earnings ESP. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.   

American Outdoor Brands has an Earnings ESP of 0.00% and a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.

Recent Leisure Products Releases

Pool Corporation POOL reported mixed second-quarter 2019 results, wherein earnings surpassed the Zacks Consensus Estimate but revenues missed the same. Adjusted earnings of $3.22 per share exceeded the Zacks Consensus Estimate by a penny and increased 15% from the year-ago quarter number. Meanwhile, quarterly net revenues totaled $1,121.3 million, which fell short of the consensus mark of $1,155 million but improved 6% year over year.

Callaway Golf Company ELY reported second-quarter 2019 adjusted earnings of 37 cents per share, which exceeded the Zacks Consensus Estimate of 25 cents. Revenues came in at $446.71 million, surpassing the Zacks Consensus Estimate by 4.1%.

Marine Products Corporation MPX reported second-quarter earnings of 27 cents per share, which outpaced the Zacks Consensus Estimate of 21 cents. Revenues of $88.7 million surpassed the Zacks Consensus Estimate by 9.3%.

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American Outdoor Brands Corporation (AOBC) : Free Stock Analysis Report
 
Pool Corporation (POOL) : Free Stock Analysis Report
 
Callaway Golf Company (ELY) : Free Stock Analysis Report
 
Marine Products Corporation (MPX) : Free Stock Analysis Report
 
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