American Outdoor Brands, Inc. (AOUT) came out with quarterly earnings of $0.37 per share, beating the Zacks Consensus Estimate of $0.22 per share. This compares to earnings of $0.25 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of 68.18%. A quarter ago, it was expected that this company would post a loss of $0.03 per share when it actually produced earnings of $0.06, delivering a surprise of 300%. Over the last four quarters, ...

Financial Performance - Net sales for the three months ended October 31, 2024, were $60.2 million, an increase of $2.3 million or 4.0% compared to the same quarter last year, driven primarily by increased sales in the outdoor lifestyle category [74]. - Gross margin for the same period was 48.0%, an increase of 230 basis points year-over-year [74]. - Net income for the three months ended October 31, 2024, was $3.1 million, or $0.24 per diluted share, compared to net income of $77,000, or $0.01 per diluted share for the same quarter last year [74]. - For the six months ended October 31, 2024, net sales were $101.9 million, an increase of $499,000 or 0.5% over the prior year [75]. - Gross margin for the six months ended October 31, 2024, was 47.0%, an increase of 140 basis points compared to the prior year [75]. - Operating income for the three months ended October 31, 2024, was $3.1 million, a significant increase of $3.1 million compared to a loss of $22,000 in the same quarter last year, resulting in an operating margin of 5.1% [92]. - Net income for the six months ended October 31, 2024, was $746,000, compared to a net loss of $4.0 million in the prior year, marking an increase of $4.78 million [98]. - Adjusted EBITDAS for the three months ended October 31, 2024, was $7.49 million, compared to $5.24 million for the same period last year [102]. Sales Channels - E-commerce channel net sales for the three months ended October 31, 2024, increased by $820,000, or 3.5% year-over-year [80]. - International net sales for the three months ended October 31, 2024, increased by $436,000, or 14.8%, primarily due to increased sales in Canada [81]. - Traditional channel net sales increased by $1.6 million, or 2.6%, over the prior year comparable period, driven by higher sales of shooting accessories and hunting products [87]. - New products represented 21.5% of net sales for the three months ended October 31, 2024 [82]. - For the six months ended October 31, 2024, new products accounted for 22.7% of net sales [88]. Expenses and Cost Management - Research and development expenses increased by $191,000 (11.4%) for the three months ended October 31, 2024, compared to the same period last year, primarily due to higher consulting and third-party service expenses [90]. - Total operating expenses decreased by $675,000 (2.5%) for the three months ended October 31, 2024, with operating expenses as a percentage of net sales improving to 42.9% from 45.8% [90]. - For the six months ended October 31, 2024, total operating expenses decreased by $2.98 million (5.9%), with operating expenses as a percentage of net sales improving to 46.5% from 49.6% [91]. - Selling, marketing, and distribution expenses decreased by $441,000 (2.9%) for the three months ended October 31, 2024, primarily due to lower advertising expenses [90]. Cash Flow and Capital Expenditures - Cash used in operating activities was $12.3 million for the six months ended October 31, 2024, compared to $3.2 million for the same period in 2023, reflecting a 282.2% increase [107]. - Cash used in investing activities was $1.6 million during the six months ended October 31, 2024, unchanged from the prior year [108]. - Cash used in financing activities was $1.6 million for the six months ended October 31, 2024, primarily due to $1.4 million used to repurchase 153,497 shares of common stock [109]. - The company expects to spend approximately $3.5 million to $4.5 million on capital expenditures in fiscal 2025, a decrease of $1.5 million to $2.5 million from the $6.0 million spent in fiscal 2024 [108]. - As of October 31, 2024, the company had $14.2 million in cash equivalents, down from $29.7 million as of April 30, 2024 [111]. Future Outlook and Risks - The company plans to utilize cash flows for business investments, including research and development for new product initiatives and potential acquisitions [103]. - The company anticipates that future capital requirements will depend on various factors, including net sales and product development efforts [110]. - The company may face limitations in taking advantage of business opportunities if sufficient funds are not available on acceptable terms [110].

American Outdoor Brands, Inc. (AOUT) is scheduled to report second-quarter fiscal 2025 results on Dec. 5, after the closing bell. In the last reported quarter, AOUT's earnings beat the Zacks Consensus Estimate by 300%. AOUT's Q2 Estimates The Zacks Consensus Estimate for second-quarter fiscal 2025 earnings is pegged at 22 cents per share, suggesting a 12% year-over-year decline. Estimate revisions have been unchanged in the past 30 days. The consensus mark for revenues is pegged at $53.3 million, implying a ...

While "the trend is your friend" when it comes to short-term investing or trading, timing entries into the trend is a key determinant of success. And increasing the odds of success by making sure the sustainability of a trend isn't easy.The trend often reverses before exiting the trade, leading to a short-term capital loss for investors. So, for a profitable trade, one should confirm factors such as sound fundamentals, positive earnings estimate revisions, etc. that could keep the momentum in the stock aliv ...

The Zacks Leisure and Recreation Products industry benefits from macroeconomic tailwinds, particularly the Federal Reserve's interest rate reduction. A positive fitness product sales trend, driven by growing health and fitness awareness and strong boat sales, has also been witnessed. Industry participants, who design, market, retail and distribute products for the outdoor and recreation market, are witnessing solid demand. Stocks like Peloton Interactive, Inc. (PTON) , Malibu Boats, Inc. (MBUU) and American ...

Investors interested in Consumer Discretionary stocks should always be looking to find the best-performing companies in the group. Has American Outdoor Brands, Inc. (AOUT) been one of those stocks this year? A quick glance at the company's year-to-date performance in comparison to the rest of the Consumer Discretionary sector should help us answer this question.American Outdoor Brands, Inc. is one of 272 companies in the Consumer Discretionary group. The Consumer Discretionary group currently sits at #9 wit ...

U.S. consumers are much more confident now than they were last month. A jumbo rate cut announced last month by the Federal Reserve, coupled with optimism surrounding more interest rate cuts in the coming months, have made consumers confident about the economy's health. Given the positive sentiment, it would be ideal to invest in discretionary stocks such as American Outdoor Brands, Inc. (AOUT) , Crocs, Inc. (CROX) , Norwegian Cruise Line Holdings Ltd. (NCLH) , Netflix, Inc. (NFLX) and Mattel, Inc. (MAT) . T ...

The Consumer Discretionary group has plenty of great stocks, but investors should always be looking for companies that are outperforming their peers. Has American Outdoor Brands, Inc. (AOUT) been one of those stocks this year? A quick glance at the company's year-to-date performance in comparison to the rest of the Consumer Discretionary sector should help us answer this question. American Outdoor Brands, Inc. is one of 272 individual stocks in the Consumer Discretionary sector. Collectively, these companie ...

While "the trend is your friend" when it comes to short-term investing or trading, timing entries into the trend is a key determinant of success. And increasing the odds of success by making sure the sustainability of a trend isn't easy.The trend often reverses before exiting the trade, leading to a short-term capital loss for investors. So, for a profitable trade, one should confirm factors such as sound fundamentals, positive earnings estimate revisions, etc. that could keep the momentum in the stock aliv ...

American Outdoor Brands, Inc. (AOUT) stock is currently trading at a notable discount relative to the Zacks Leisure and Recreation Products industry. With a forward 12-month Price/Earnings ratio of 14.99x, it sits well below the industry average of 28.75x and the Consumer Discretionary sector’s 17.96x.In the past three months, AOUT shares have gained 8% compared with the industry’s growth of 19.1%. In the same time frame, other stocks like On Holding AG (ONON) , Acushnet Holdings Corp. (GOLF) and Academy Sp ...