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American Outdoor Stock Surges on Q2 Earnings and Revenue Beat

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American Outdoor Brands, Inc. (AOUT - Free Report) reported second-quarter fiscal 2025 results, wherein both the top and bottom lines surpassed the Zacks Consensus Estimate. The company’s top line surpassed the Zacks Consensus Estimate for the seventh straight quarter, whereas the bottom line beat the same for the second straight quarter.

Following the results, the company’s shares increased 9.1% in the after-hour trading session yesterday. 

Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar.

AOUT’s Fiscal Q2 Earnings & Sales

In the quarter under review, American Outdoor reported adjusted earnings of 37 cents per share, beating the Zacks Consensus Estimate of 22 cents. In the prior-year quarter, the company had reported adjusted earnings per share of 25 cents.

AOUT reported quarterly net sales of $60.2 million, beating the consensus estimate of $53 million. Howeover, the metric declined 4% year over year. The company's fiscal second-quarter performance exceeded expectations, driven by a 5.4% increase in the Outdoor Lifestyle category and a 1.9% rise in Shooting Sports. Growth was achieved across all sales channels, including traditional and e-commerce platforms, as well as domestic and international markets, indicating broad-based strength.

Other Financials of American Outdoor

Total operating expenses were $25.8 million, down 2.5% year over year. Gross margin was 48%, up 230 basis points year over year.

Adjusted EBITDAS was $7.5 million compared with $5.2 million in the year-ago quarter.

AOUT’s Balance Sheet

As of Oct. 31, 2024, cash and cash equivalents totaled $14.2 million compared with $29.7 million as of April 30, 2024.

Total current liabilities amounted to $42.6 million at the end of second-quarter fiscal 2025 compared with $29.4 million at the end of April 30, 2024.

AOUT’s Zacks Rank & Key Picks

The company currently has a Zacks Rank #3 (Hold).

Some better-ranked stocks in the Zacks Consumer Discretionary sector have been discussed below.

Cinemark Holdings, Inc. (CNK - Free Report) currently has a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks Rank #1 (Strong Buy) stocks here.

CNK delivered a trailing four-quarter earnings surprise of 164.8%, on average. The stock has surged 140% in the past year. The Zacks Consensus Estimate for CNK’s 2025 sales indicates growth of 11% from the year-ago levels.

Norwegian Cruise Line Holdings Ltd. (NCLH - Free Report) currently holds a Zacks Rank #2. NCLH delivered a trailing four-quarter earnings surprise of 4.2%, on average. The stock has surged 85.9% in the past year.

The Zacks Consensus Estimate for NCLH’s 2024 sales and earnings per share (EPS) indicates growth of 10.5% and 134.3%, respectively, from the year-ago levels.

Royal Caribbean Cruises Ltd. (RCL - Free Report) currently carries a Zacks Rank #2. RCL delivered a trailing four-quarter earnings surprise of 16.2%, on average. The stock has surged 126.3% in the past year.

The Zacks Consensus Estimate for RCL’s 2024 sales and EPS indicates growth of 18.6% and 71.8%, respectively, from the year-ago levels.


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