Categories Earnings, LATEST, Other Industries

American Outdoor Brands stock rallies on Q1 earnings beat

In a sign that demand for firearms is gathering steam after falling in the wake of recent restrictions on sales, American Outdoor Brands Thursday (AOBC) reported above-consensus earnings for the first quarter. The company’s stock gained more than 18% following the report.

Net income, on an adjusted basis, rose to $11.7 million or $0.21 per share during the three-month period from $1.2 million or $0.02 per share a year earlier, exceeding expectations. Reported earnings were $0.14 per share, compared to a loss of $0.04 per share last year.

American Outdoor Brands first quarter 2019 earnings
American Outdoor Brands Corporation Q1 2019 Earnings Infographic

“Our increased profitability was driven by consumer preference for our new products, reduced promotions versus the prior year, and solid progress on a number of our expense reduction initiatives, ” said CEO James Debney.

Total sales rose 7.6% annually to $138.8 million, which was in line with Wall Street estimates. Sales benefitted from recent innovations in the company’s product portfolio.

In recent quarters, American Outdoor Brands faced challenges in its key markets, mainly due to muted demand. Gun manufacturers have been under fire from regulators and social groups following widespread protests triggered by a series of shootings that shook the country, with the latest being the Jacksonville incident.

In a fresh blow to the pro-gun lobby, a district court recently imposed a ban on blueprints of 3D-printed weapons that can be downloaded from the internet.

Shares of American Outdoor Brands fell about 41% over the past twelve months. The stock traded lower throughout the regular session Thursday, but rose sharply in extended trading after the announcement.

RELATED: American Outdoor Brands Q4 earnings fall

American Outdoor Brands fourth quarter 2018 earnings

 

 

 

 

 

Most Popular

HPE Earnings: Hewlett Packard Q1 2024 profit drops but beats Street view

Information technology solutions provider Hewlett Packard Enterprise (NYSE: HPE) on Thursday reported lower earnings and revenues for the first quarter of 2024. Earnings, however, exceeded analysts’ forecasts. First-quarter profit, excluding

After entering FY24 on a high note, Costco is all set to report Q2 results

Costco Wholesale Corporation (NASDAQ: COST) stands out in the retail space for its unique business model that enables the warehouse behemoth to grow store traffic and market share constantly. Currently,

Hormel (HRL) expects continued momentum from its foodservice business in FY2024

Shares of Hormel Foods Corporation (NYSE: HRL) soared over 13% on Thursday after the company delivered better-than-expected earnings results for the first quarter of 2024 and reaffirmed its outlook for

Add Comment
Loading...
Cancel
Viewing Highlight
Loading...
Highlight
Close
Top