American Outdoor Brands (AOBC) Q4 Earnings Top, Revenues Lag

American Outdoor Brands Corporation AOBC reported fourth-quarter fiscal 2018 (ended Apr 31, 2018) results. The company’s adjusted earnings per share of 24 cents surpassed the Zacks Consensus Estimate of 11 cents by 118.2%. However, the reported figure declined 57.9% from the year-ago level of 57 cents.

Excluding the one-time items, the company reported GAAP earnings of 14 cents per share compared with prior-year quarter’s figure of 50 cents per share.

American Outdoor Brands Corporation Price, Consensus and EPS Surprise

American Outdoor Brands Corporation Price, Consensus and EPS Surprise | American Outdoor Brands Corporation Quote

 

Revenues

In the fiscal fourth quarter, American Outdoor Brands’ total revenues were $172 million, which lagged the Zacks Consensus Estimate of $182 million by 5.5%. The top-line figure also declined 25% from $229.2 million in the year-ago quarter.

Operational Highlights

In the quarter under review, total operating income came in at $16.4 million, down from $45.1 million in the year-ago quarter.

Gross margin was 33.4% compared with 39.6% in fourth-quarter fiscal 2017.

American Outdoor Brands’ total operating expenses were $41 million, down 10.4% from $45.1 million in the year-ago quarter. The downside can be attributed to a 15.8% decline in general and administrative expenses.

Financial Condition

As of Apr 30, 2018, American Outdoor Brands’ cash and cash equivalents were $48.9 million compared with $61.5 million as of Apr 30, 2017.

Notes payable (net) was $180.3 million as of Apr 30, 2018, up from $210.7 million as of Apr 30, 2017.

Cash flow from operating activities for the fiscal year (ended Apr 30, 2018) totaled $61.6 million compared with $123.6 million a year ago.

 Guidance

American Outdoor Brands expects first-quarter fiscal 2019 adjusted earnings in the range of 10-14 cents per share. Revenues are anticipated in the $130–$140 million band.

For fiscal 2019, the company expects adjusted earnings in the band of 40-50 cents per share. Revenues are envisioned between $570 million and $600 million for the same period.

Zacks Rank

American Outdoor Brands has a Zacks Rank #3 (Hold).You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Other Defense Releases

Spirit AeroSystems Holdings, Inc. SPR reported first-quarter 2018 earnings of $1.10 per share, which missed the Zacks Consensus Estimate of $1.35 by 18.5%.

L3 Technologies, Inc. LLL posted first-quarter 2018 earnings of $2.34 per share from continuing operations, surpassing the Zacks Consensus Estimate of $1.99 by 2.2%.

Embraer SA ERJ incurred a loss of 13 cents per share in first-quarter 2018, wider than the Zacks Consensus Estimate of a loss of a penny.

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