American Outdoor Brands (AOUT) Reports Earnings Tomorrow: What To Expect

Recreational products manufacturer American Outdoor Brands (NASDAQ:AOUT) will be reporting earnings this Thursday after market close. Here’s what you need to know.

American Outdoor Brands beat analysts’ revenue expectations last quarter, reporting revenues of $56.58 million, down 3.3% year on year. It was a strong quarter for the company, with a beat of analysts’ EPS estimates and an impressive beat of analysts’ EBITDA estimates.

Is American Outdoor Brands a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.

This quarter, the market is expecting American Outdoor Brands’s revenue to decline 21.8% year on year, a reversal from the 33.8% increase it recorded in the same quarter last year.

Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business will stay the course heading into earnings. American Outdoor Brands rarely misses Wall Street’s revenue estimates.

Looking at American Outdoor Brands’s peers in the consumer discretionary segment, some have already reported their Q1 results, giving us a hint as to what we can expect. Smith & Wesson delivered year-on-year revenue growth of 26.7%, beating analysts’ expectations by 14.9%, and YETI reported revenues up 8.3%, topping estimates by 1.6%. Smith & Wesson’s stock price was unchanged after the resultswhile YETI was up 11.3%.

Read our full analysis of Smith & Wesson’s results here and YETI’s results here.

There has been positive sentiment among investors in the consumer discretionary segment, with share prices up 3.4% on average over the last month. American Outdoor Brands is up 3.1% during the same time and is heading into earnings with an average analyst price target of $12.50 (compared to the current share price of $10.16).

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