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American Outdoor Brands’ Q1 results miss expectations

American Outdoor Brands Corporation (NASDAQ: AOBC) missed sales and earnings estimates for the first quarter of 2020 and lowered its earnings guidance for the full year, sending the stock plummeting over 13% in aftermarket hours on Thursday.  

American Outdoor Brands’s Smith & Wesson Revolver (Credit: Smith & Wesson)

Net sales fell nearly 11% year-over-year to $123.7 million, missing estimates of $127 million.  

On a GAAP basis, the company reported a net loss of $2.1 million, or $0.04 per share, compared to a net income of $7.6 million, or $0.14 per share, last year. Adjusted net income was $1.7 million, or $0.03 per share. Analysts had forecast adjusted EPS of $0.07.  

Gross margin for the quarter rose to 38.7% from 37.8% last year. Adjusted EBITDAS was $17.5 million, or 14.1% of net sales, compared to $28.4 million, or 20.4% of net sales, last year.

Also see: American Outdoor Brands Q1 2020 Earnings Preview

At quarter-end, the company had cash of $30.7 million and total net borrowings of $149.1 million. 

For the second quarter of 2020, the company expects sales of $140-150 million and adjusted EPS of $0.03-0.07. For the full year of 2020, sales is expected to be $630-650 million and GAAP EPS is expected to be $0.41-0.49. The company now expects adjusted EPS to be $0.70-0.78 versus the prior outlook of $0.76-0.84.  

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