LONDON, UK / ACCESSWIRE / January 09, 2018 / Active-Investors.com has just released a free earnings report on American Outdoor Brands Corp. (NASDAQ: AOBC) ("American Outdoor"). If you want access to this report all you need to do is sign up now by clicking the following link www.active-investors.com/registration-sg/?symbol=AOBC. The Company posted its second quarter fiscal 2018 (Q2 FY18) financial results on December 07, 2017. The leading firearm related products manufacturers provided guidance for the upcoming quarter. Register today and get access to over 1,000 Free Research Reports by joining our site below:
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Active-Investors.com is focused on giving you timely information and the inside line on companies that matter to you. This morning, American Outdoor Brands most recent news is on our radar and our team decided to put out a fantastic report on the company that is now available for free below:
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Earnings Highlights and Summary
During the second quarter of the fiscal year 2018, American Outdoor posted net sales of $148.43 million compared to $233.53 million Q2 FY17, decreasing 36.44% on a y-o-y basis. The decline in sales was due to a steep drop in Firearms orders from both wholesalers and retailers and was partially offset by higher revenue in Outdoor Products & Accessories business. Revenue numbers still managed to beat analysts' estimates of $140.00 million.
The Company's gross profit was $50.80 million in the reported quarter compared to $97.61 million in Q2 FY17, decreasing 47.95% on a y-o-y basis. The gross margin of the Company was 34.20% in Q2 FY18 compared to 41.80% in Q2 FY17. This was a consequence of the highly promotional environment for firearms which persisted for the last several quarters than originally anticipated. The selling, general, and administrative expenses (SG&A) amounted to $24.71 million in the reported quarter compared to $30.23 million in Q2 FY17, decreasing 18.25% on a y-o-y basis. American Outdoor's operating income was $7.99 million in Q2 FY18 compared to $52.15 million in Q2 FY17.
American Outdoor's net income was $3.23 million in the reported quarter compared to $32.48 million in Q2 FY17. The Company's adjusted diluted earnings per share (EPS) were $0.11 in Q2 FY18 compared to $0.68 in the second quarter of the previous fiscal year, which were above analysts' estimates of $0.07.
American Outdoor Brands' Segments Details
American Outdoor has two business segments, namely: (i) Firearms, and (ii) Outdoor Products & Accessories.
In the Firearms segment, shipments of new M&P branded new polymer products in full- size, helped to offset lower orders in other product categories. Internal inventories peaked during the quarter due to new firearm product launches.
Cash Matters
American Outdoor had cash and cash equivalents of $68.17 million as on October 31, 2017, compared to $73.90 million as on October 31, 2016. Cash outflow from operating activities was $30.65 million in the reported quarter, compared to cash inflow from operating activities of $61.37 million in Q2 FY17. During the second quarter, the Company completed the purchase of substantially all of the assets of Gemini Technologies, a provider of suppressors and accessories for consumer and military markets, for $10.90 million. The Company also completed the purchase of substantially all of the assets of Fish Tales, a provider of premium sportsman knives and tools for fishing and hunting, for approximately $12.10 million.
Outlook
American Outdoor is forecasting non-GAAP earnings to be in the band of $0.07 to $0.10 for the third quarter of fiscal year 2018, and revenue growth to be in the range of $170.00 million to $180.00 million. For the fiscal year 2018, American Outdoor expects sales growth to be in the range of $650.00 million to $675.00 million and EPS to be in the band of $0.57 to $0.67.
Stock Performance Snapshot
January 08, 2018 - At Monday's closing bell, American Outdoor Brands' stock dropped 2.26%, ending the trading session at $12.09.
Volume traded for the day: 1.41 million shares.
After yesterday's close, American Outdoor Brands' market cap was at $652.74 million.
Price to Earnings (P/E) ratio was at 11.18.
The stock is part of the Industrial Goods sector, categorized under the Aerospace/Defense Products & Services industry. This sector was up 0.3% at the end of the session.
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