Recreational products manufacturer American Outdoor Brands (NASDAQ: AOUT) will be reporting results this Thursday after the bell. Here’s what to expect.
American Outdoor Brands beat analysts’ revenue expectations by 27.8% last quarter, reporting revenues of $61.94 million, up 33.8% year on year. It was an incredible quarter for the company, with a beat of analysts’ EPS estimates and a solid beat of analysts’ EBITDA estimates.
Is American Outdoor Brands a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting American Outdoor Brands’s revenue to decline 14.1% year on year to $35.77 million, a further deceleration from the 4.1% decrease it recorded in the same quarter last year. Adjusted loss is expected to come in at -$0.25 per share.
The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. American Outdoor Brands has a history of exceeding Wall Street’s expectations, beating revenue estimates every single time over the past two years by 8.8% on average.
Looking at American Outdoor Brands’s peers in the leisure products segment, some have already reported their Q2 results, giving us a hint as to what we can expect. Polaris’s revenues decreased 5.6% year on year, beating analysts’ expectations by 9.2%, and YETI reported a revenue decline of 3.8%, falling short of estimates by 3.7%. Polaris traded up 17% following the results while YETI was down 10.4%.
Read our full analysis of Polaris’s results here and YETI’s results here.
There has been positive sentiment among investors in the leisure products segment, with share prices up 10.2% on average over the last month. American Outdoor Brands is up 4.5% during the same time and is heading into earnings with an average analyst price target of $16.50 (compared to the current share price of $9.66).
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