American Outdoor Brands (AOBC) Tops Q3 Earnings, Up Y/Y
American Outdoor Brands Corporation AOBC reported financial results for third-quarter fiscal 2017 ended Jan 31, 2017. The company’s adjusted earnings per share of 66 cents surpassed the Zacks Consensus Estimate of 54 cents by 22.2%. Reported earnings also grew 11.9% from the year-ago level of 59 cents.
Revenues
In the fiscal third quarter, American Outdoor Brands’ total sales were $233.5 million, marginally missing the Zacks Consensus Estimate of $234 million. Revenues were, however, up 10.8% from $210.8 million in the year-ago quarter.
Operational Highlights
Total operating income during the quarter was $50.2 million, up 0.1% from $50.1 million in the year-ago quarter.
Gross margin for the quarter was 42.5%, compared with 41.1% in third-quarter fiscal 2016. The upside was mainly driven by higher fixed cost absorption, better purchase price variances and favorable inventory adjustments in firearms as well as higher standard product margins in outdoor products.
American Outdoor Brands’ total operating expense was $49.1 million, up 34.5% from $36.5 million in the year-ago quarter. The upside was driven by a 39.1% increase in general and administrative expenses, 30.8% 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 Jan 31, 2017, American Outdoor Brands’ cash and cash equivalents were $54.3 million, compared with $191.3 million as of Apr 30, 2016.
Notes payable (net) was $162.0 million as of Jan 31, 2017, down from $166.6 million as of Apr 30, 2016.
Cash from operating activities in the first nine months of fiscal 2017 was $109.5 million, compared with $73.7 million a year ago.
Guidance
American Outdoor Brands expects fourth-quarter fiscal 2017 non-GAAP earnings in the range of 32–42 cents per share. The company projects its revenues in the range of $200–$220 million.
For fiscal 2017, the company provided its non-GAAP earnings expectation in the band of $2.33–$2.43 per share. Revenues are expected in the range of $874–$894 million.
Peer Releases
Rockwell Collins Inc.’s COL adjusted earnings per share of $1.20 surpassed the Zacks Consensus Estimate of $1.15 by 4.3%. Reported earnings, however, slipped 0.8% from $1.21 per share earned a year ago.
Spirit AeroSystems Holdings, Inc. SPR posted fourth-quarter 2016 adjusted earnings of 89 cents per share, which missed the Zacks Consensus Estimate of $1.02 by 12.7%. Earnings also fell 6.3% from the year-ago figure of 95 cents owing to a decline in revenues.
AAR Corp. AIR reported second-quarter fiscal 2017 earnings of 35 cents per share, up 34.6% from the year-ago figure of 26 cents.
Zacks Rank
American Outdoor Brands currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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