Recreational products manufacturer American Outdoor Brands (NASDAQ:AOUT) will be announcing earnings results tomorrow after market close. Here’s what investors should know.
American Outdoor Brands beat analysts’ revenue expectations by 1.4% last quarter, reporting revenues of $41.64 million, down 4.1% year on year. It was an exceptional quarter for the company, with a solid 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.
This quarter, analysts are expecting American Outdoor Brands’s revenue to decline 8.1% year on year to $53.23 million, a reversal from the 6.4% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.21 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. American Outdoor Brands has missed Wall Street’s revenue estimates twice over the last two years.
Looking at American Outdoor Brands’s peers in the leisure products segment, some have already reported their Q3 results, giving us a hint as to what we can expect. Malibu Boats’s revenues decreased 32.9% year on year, beating analysts’ expectations by 2.6%, and MasterCraft reported a revenue decline of 30.7%, topping estimates by 6.7%. Malibu Boats traded up 4.3% following the results while MasterCraft was also up 28.5%.
Read our full analysis of Malibu Boats’s results here and MasterCraft’s results here.
There has been positive sentiment among investors in the leisure products segment, with share prices up 8.7% on average over the last month. American Outdoor Brands is up 3.3% during the same time and is heading into earnings with an average analyst price target of $11.25 (compared to the current share price of $9.40).
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