Olin (OLN) Completes Acquisition of White Flyer Targets
Olin Corporation OLN officially completed its previously-announced acquisition of White Flyer Targets, a leading provider of recreational trap, skeet and sporting clay targets in North America. White Flyer will now be integrated into the Winchester Ammunition business.
This acquisition encompasses White Flyer's five cutting-edge manufacturing facilities situated in Coal Township, PA, Dalton, GA, Webb City, MO, Knox, IN, and San Bernardino, CA. It also includes White Flyer's recently introduced ECO FLYER target product line.
Brett Flaugher, the president of Winchester Ammunition, expressed a warm welcome to the new White Flyer team, emphasizing the collaborative potential to further enhance the growth of trap, skeet, sporting clays, and other shotgun sports. These two highly respected brands are well-known for their unparalleled quality. They will provide even greater value to customers by offering comprehensive ammunition and clay target solutions for the numerous shooting ranges throughout the United States.
The acquisition was financed using Olin's available cash, and it is anticipated to positively impact Olin's shareholders immediately.
Shares of Olin have risen 8.3% in the past year against a 6% rise of the industry.
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Olin reported second-quarter earnings of $1.13 per share, a decrease from $2.76 per share, in the previous year's quarter. However, it exceeded the Zacks Consensus Estimate of $1.04 per share. The company's revenues dropped by approximately 35% year-over-year to $1,702.7 million, missing the Zacks Consensus Estimate of $1,850.2 million.
The Winchester segment saw a 16.7% decline in revenues to $366.6 million due to lower commercial ammunition shipments, partially offset by higher military sales. Despite this, OLN anticipates improved Winchester's performance in the third quarter, driven by international and domestic military market growth. Olin foresees a 10% decline in adjusted EBITDA for the third quarter of 2023 compared to the second quarter, with full-year adjusted EBITDA expected to be around $1.4 billion.
Olin Corporation Price and Consensus
Olin Corporation price-consensus-chart | Olin Corporation Quote
Zacks Rank & Key Picks
Olin currently carries a Zacks Rank #4 (Sell).
Some better-ranked stocks in the basic materials space are WestRock Company WRK and Hawkins, Inc. HWKN, both sporting a Zacks Rank #1 (Strong Buy), and Alamos Gold Inc. AGI, carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The earnings estimate for Westrock’s current year is pegged at $3.02. In the past 60 days, WRK’s current-year earnings estimate has been revised upward by 29%. WRK beat the Zacks Consensus Estimate in three of the last four quarters, with the average earnings surprise being 30.7%. The company’s shares have rallied 11.6% in the past year.
The consensus estimate for Hawkins’ current-year earnings is pegged at $3.40, indicating year-over-year growth of 18.9%. In the past 60 days, HWKN’s current-year earnings estimate has been revised upward by 32.3%. HWKN beat the Zacks Consensus Estimate in all the last four quarters, with the average earnings surprise being 25.6%. The company’s shares have rallied 53.8% in the past year.
The earnings estimate for Alamos’ current year is pegged at 43 cents, indicating a year-over-year growth of 53.6%. The Zacks Consensus Estimate for AGI current-year earnings has been revised 7.5% upward in the past 60 days. The company’s shares have risen roughly 40.5% in the past year.
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