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American Outdoor Brands (AOBC) Q4 Earnings Beat, Decline Y/Y

American Outdoor Brands CorporationAOBC reported financial results for fourth-quarter fiscal 2017 ended Apr 30, 2017. The company's adjusted earnings per share of 57 cents surpassed the Zacks Consensus Estimate of 38 cents by 50%. Reported earnings, however, declined 13.6% from the year-ago level of 66 cents.

In fiscal 2017 adjusted earnings per share of $2.58 grew 41% from the year-ago figure of $1.83.

Revenues

In the fiscal fourth quarter, American Outdoor Brands' total sales were $229.2 million, beating the Zacks Consensus Estimate of $210 million by 9.4%. Revenues were also up 3.6% from $221.1 million in the year-ago quarter.

Fiscal 2017 revenues were $903.2 million, up 24.9% from $722.9 million in fiscal 2016.

Operational Highlights

Total operating income during the quarter was $45.1 million, down 20.8% from $56.9 million in the year-ago quarter.

Gross margin for the quarter was 39.6% compared with 41.6% in fourth-quarter fiscal 2016.

American Outdoor Brands' total operating expenses were $45.7 million, up 30% from $35.2 million in the year-ago quarter. The upside was driven by a 28.4% increase in general and administrative expenses, 39.7% increase in selling and marketing expenses, and 9.6% increase in research and development expenses.

American Outdoor Brands Corporation Price, Consensus and EPS Surprise

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

Financial Condition

As of Apr 30, 2017, American Outdoor Brands' cash and cash equivalents were $61.5 million compared with $191.3 million as of Apr 30, 2016.

Notes payable (net) was $210.7 million as of Apr 30, 2017, up from $166.6 million as of Apr 30, 2016.

Cash from operating activities in fiscal 2017 was $123.6 million compared with $168.6 million a year ago.

Guidance

American Outdoor Brands expects first-quarter fiscal 2018 non-GAAP earnings in the range of 7-12 cents per share. The company anticipates its revenues to be in the range of $140-$150 million.

For fiscal 2018, the company provided its non-GAAP earnings expectation in the band of $1.52-$1.62 per share. Revenues are expected in the range of $750-$790 million for the same period.

Peer Releases

Raytheon Company RTN reported first-quarter 2017 adjusted earnings from continuing operations of $1.73 per share, beating the Zacks Consensus Estimate by 7.5%. The company's first-quarter revenues of $6,000 million also surpassed the Zacks Consensus Estimate by 2.7%. The company carries a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here .

Rockwell Collins Inc.'s COL second-quarter fiscal 2017 (ended Mar 31, 2017) adjusted earnings per share of $1.34 surpassed the Zacks Consensus Estimate by 2.3%. Total sales were $1,342 million, beating the Zacks Consensus Estimate by 0.9%. The company carries a Zacks Rank #3 (Hold).

AAR Corp. AIR reported third-quarter fiscal 2017 earnings of 38 cents per share, which were in line with the Zacks Consensus Estimate. Net sales came in at $446.7 million, which beat the Zacks Consensus Estimate by 5.8%. This company also carries a Zacks Rank #3.

Zacks Rank

American Outdoor Brands currently carries a Zacks Rank #4 (Sell).

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Rockwell Collins, Inc. (COL): Free Stock Analysis Report

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American Outdoor Brands Corporation (AOBC): Free Stock Analysis Report

Raytheon Company (RTN): Free Stock Analysis Report

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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