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American Outdoor Brands' (AOBC) Q4 Earnings & Sales Beat

Zacks Equity Research

American Outdoor Brands Corporation AOBC reported fourth-quarter fiscal 2019 (ended Apr 30, 2019) financial results. The company’s adjusted earnings of 26 cents per share surpassed the Zacks Consensus Estimate of 17 cents by 52.9%. The bottom line also improved 8.3% from the year-ago quarter’s 24 cents.

The company’s GAAP earnings came in at 18 cents per share in the reported quarter compared with 14 cents in fourth-quarter fiscal 2018.

For fiscal 2019, earnings were 83 cents per share, up 80.4 % from 46 cents in the previous year. Moreover, full-year earnings figure exceeded the Zacks Consensus Estimate of 75 cents by 10.7%.

Revenues

American Outdoor Brands’ total sales amounted to $175.7 million in the quarter under review, which exceeded the Zacks Consensus Estimate of $168 million by 4.6%. The top line also increased 2.2% from $172 million in the year-ago quarter.

Full-year net sales were $638.3 million, up 5.2% from $606.9 million a year ago.

Operational Highlights

In the reported quarter, total operating income was $15.3 million compared that of $16.4 million generated during the year-ago quarter.

Gross margin was 36.1% compared with 33.4% in fourth-quarter fiscal 2018. American Outdoor Brands’ operating expenses totaled $48.1 million, up 17.3% from $41 million in the prior-year quarter. Higher research and development, selling and marketing, and general and administrative expenses primarily lead to this decline.

American Outdoor Brands Corporation Price, Consensus and EPS Surprise

 

American Outdoor Brands Corporation Price, Consensus and EPS Surprise

American Outdoor Brands Corporation price-consensus-eps-surprise-chart | American Outdoor Brands Corporation Quote

Financial Highlights

American Outdoor Brands’ cash and cash equivalents were $41 million as of Apr 30, 2019, compared with $48.9 million as of Apr 30, 2018.

Notes and loans payables (net) were $149.4 million as of Apr 30, 2019, compared with $180.3 million as of Apr 30, 2018.

Net cash provided by operating activities for the three months ended Apr 30, 2019, was $57.5 million compared with $61.6 million a year ago.

Q1 and Fiscal 2020 Guidance

For first-quarter fiscal 2020, American Outdoor Brands expects adjusted earnings of 3-7 cents per share. Revenues are anticipated to be $120-$130 million.

For fiscal 2020, it continues to expect adjusted earnings of 76-84 cents per share on revenues of $630-$650 million. Currently, the Zacks Consensus Estimate for earnings and revenues is pegged at 82 cents and $653.15 million, respectively.

Zacks Rank

American Outdoor Brands sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Other Defense Releases

Textron Inc. TXT reported first-quarter 2019 earnings from continuing operations of 76 cents per share, which surpassed the Zacks Consensus Estimate of 70 cents by 8.6%.

Lockheed Martin Corp. LMT reported first-quarter 2019 earnings of $5.99 per share, which surpassed the Zacks Consensus Estimate of $4.29 by 39.6%.

The Boeing Company BA reported adjusted earnings of $3.16 per share for first-quarter 2019, which outshined the Zacks Consensus Estimate of $3.11 by 1.6%.

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