What To Expect From American Outdoor Brands's (AOUT) Q1 Earnings

Jabin Bastian /
2024/06/26 1:18 pm EDT

Recreational products manufacturer American Outdoor Brands (NASDAQ:AOUT) will be reporting earnings tomorrow after the bell. Here's what to expect.

American Outdoor Brands beat analysts' revenue expectations by 4.4% last quarter, reporting revenues of $53.43 million, up 5% year on year. It was a weak quarter for the company, with a miss of analysts' operating margin and earnings estimates.

Is American Outdoor Brands a buy or sell going into earnings? Read our full analysis here, it's free.

This quarter, analysts are expecting American Outdoor Brands's revenue to grow 2.2% year on year to $43.15 million, a reversal from the 8% decrease it recorded in the same quarter last year. Adjusted loss is expected to come in at -$0.07 per share.

American Outdoor Brands Total Revenue

The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. American Outdoor Brands has missed Wall Street's revenue estimates three times over the last two years.

Looking at American Outdoor Brands's peers in the consumer discretionary segment, some have already reported their Q1 results, giving us a hint as to what we can expect. Smith & Wesson delivered year-on-year revenue growth of 9.9%, beating analysts' expectations by 1.5%, and La-Z-Boy reported a revenue decline of 1.4%, topping estimates by 7.2%. Smith & Wesson traded down 12.7% following the results while La-Z-Boy was up 19.5%.

Read our full analysis of Smith & Wesson's results here and La-Z-Boy's results here.

Investors in the consumer discretionary segment have had steady hands going into earnings, with share prices flat over the last month. American Outdoor Brands is up 3.5% during the same time and is heading into earnings with an average analyst price target of $11.3 (compared to the current share price of $8.39).

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