The first-quarter results of American Outdoor Brands (AOBC) for the fiscal 2019 is around the corner, especially in the midst of the latest shooting at Jacksonville. Analysts expect the stock to go higher if key metrics beat estimates. But if it is a miss, AOBC might get battered further.
According to Zacks research, the gun maker might post quarterly earnings of $0.12 per share, indicating more than 500% growth year-over-year. Revenue is seen to grow 7% higher to hit $138 million.
In the last reported quarter, American Outdoor Brands was expected to post earnings of $0.11 per share, but it beat estimates with earnings of $0.24 a share, a surprise of over 118%.
In the midst of gun companies posting sluggish sales and tapering stock prices a quarter ago, the parent company of Smith & Wesson (SWCH), reported another quarter of dipping sales with a 24.9% decline in sales year-over-year at $172 million.
AOBC has been seeing many challenges in its target markets for firearms resulting from the lower shipments and weaker demand.
However, firearm background checks rose 9.1% from last year for the months beginning February till April this year, reflecting an increase in demand. However, this trend does not seem to have driven American Outdoor Brands sales last time.
Asian Electronic Sports Federation blames US gun laws
While many organizations have expressed sympathy for the victims in the shooting at the video game tournament in a shopping mall in Florida, President of Asian Electronic Sports Federation president Kenneth Fok took to attack US gun laws.
Fok said that the deadly shooting was more a reflection of the gun laws and not the gaming community.
According to the authorities, 24-year-old David Katz of Baltimore went on a terrorizing rampage, killing two and wounding nine others at a Madden tournament in a Jacksonville mall.
In a news conference on Wednesday, Fok said, “Of course tragedies like this should never happen. One is already too many.”
“But I think this is a bigger issue of gun control and access to guns,” he added.