The company has been trying to focus more on its
outdoor-related products and this segment is expected to help drive growth
going forward. For the first quarter, the weakness in firearms is expected to
result in lower revenue and earnings for the company.
In the fourth quarter of 2019, American Outdoor beat revenue and earnings estimates. Sales rose 2.2% to $175.7 million while adjusted EPS rose 8.3% to $0.26.
Also see: American Outdoor Brands Q4 2019 Earnings Call Transcript
For the first
quarter of 2020, the company has guided for sales of $120-130 million and adjusted
EPS of $0.03-0.07. For the full year of 2020, revenue is forecasted to be
$630-650 million and adjusted EPS is estimated to be $0.76-0.84.
Shares of American Outdoor have fallen 39% thus far this year and 19% in the past one month. The stock was up 1.6% in afternoon hours on Monday.