American Outdoor's (AOUT) Q3 Earnings & Sales Top Estimates

American Outdoor Brands, Inc. AOUT reported third-quarter fiscal 2024 results, with the top and the bottom line surpassing the Zacks Consensus Estimate. Both metrics beat estimates for the fourth straight quarter.

Following the results, the company’s shares increased 4.8% in the after-hours trading session on Mar 7.  

The company believes its brands are well-positioned to benefit from positive, long-term consumer outdoor participation trends. AOUT reaffirms its anticipation that its net sales for fiscal 2024 may surpass fiscal 2023 levels by up to 3.5%.

Earnings & Sales

In the quarter under review, American Outdoor reported adjusted earnings of 8 cents per share, beating the Zacks Consensus Estimate of 7 cents by 14.3%. However, the company’s earnings declined 38.5% year over year.

American Outdoor Brands, Inc. Price, Consensus and EPS Surprise

 

American Outdoor Brands, Inc. Price, Consensus and EPS Surprise

American Outdoor Brands, Inc. price-consensus-eps-surprise-chart | American Outdoor Brands, Inc. Quote

 

AOUT reported quarterly net sales of $53.4 million, beating the consensus estimate of $51.2 million by 4.4%. The metric rose 5% year over year, primarily due to an increase in traditional channel and e-commerce net sales.

Operating Highlights

Total operating expenses were $25.7 million, down 4.7% year over year. Gross margin came in at 42.7%, down 440 basis points year over year. The downside was due to the impact of amortization in the second half of the fiscal 2024 of tariff and freight costs resulting from higher inventory purchases in the first half of fiscal 2024.

Adjusted EBITDAS was $2.4 million compared with $3.3 million in the year-ago quarter.

Balance Sheet

As of Jan 31, 2024, cash and cash equivalents totaled $15.9 million compared with $22 million as of Apr 30, 2023.

Total current liabilities amounted to $23 million at the end of third-quarter fiscal 2024, in line with the reported figures at the end of Apr 30, 2023.

Zacks Rank

American Outdoor currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Recent Consumer Discretionary Releases

American Public Education, Inc. APEI delivered strong earnings in fourth-quarter 2023. The top and bottom lines handily surpassed the Zacks Consensus Estimate on the back of contributions from the American Public University System (“APUS”) and Hondros College of Nursing (“HCN”) segments.

Strategic Education, Inc. STRA , or SEI, reported impressive results for fourth-quarter 2023. Its quarterly earnings and revenues topped the Zacks Consensus Estimate and increased year over year.

Growth across its three segments, led by continued enrollment growth in the U.S. Higher Education (“USHE”), which was driven significantly by employer-affiliated enrollment, strong growth in the Education Technology Services (earlier known as Alternative Learning) and improving performance in Australia/New Zealand (“ANZ”), drove the result.

Culp, Inc. CULP reported mixed third-quarter fiscal 2024 (ended Jan 28) results, with earnings missing the Zacks Consensus Estimate and net sales surpassing the same. On a year-over-year basis, net sales increased and the adjusted loss improved.

Despite the ongoing demand softness, the company benefited from strong contributions from both of its core business segments. Improved pricing and margin also contributed to the positive.

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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.

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