Sports and recreation company (NYSE:VSTO) will be reporting earnings tomorrow after the bell. Here’s what to look for.
Vista Outdoor met analysts’ revenue expectations last quarter, reporting revenues of $644.2 million, down 7.1% year on year. It was a mixed quarter for the company, with a decent beat of analysts’ earnings estimates but underwhelming earnings guidance for the full year.
Is Vista Outdoor a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting Vista Outdoor’s revenue to decline 1.5% year on year to $666.6 million, improving from the 13.4% decrease it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.95 per share.
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. Vista Outdoor has missed Wall Street’s revenue estimates four times over the last two years.
Looking at Vista Outdoor’s peers in the leisure products segment, some have already reported their Q3 results, giving us a hint as to what we can expect. Malibu Boats’s revenues decreased 32.9% year on year, beating analysts’ expectations by 2.6%, and Harley-Davidson reported a revenue decline of 25.7%, topping estimates by 17.9%. Malibu Boats’s stock price was unchanged after the results, and Harley-Davidson’s price followed a similar reaction.
Read our full analysis of Malibu Boats’s results here and Harley-Davidson’s results here.
Investors in the leisure products segment have had steady hands going into earnings, with share prices up 2% on average over the last month. Vista Outdoor’s stock price was unchanged during the same time and is heading into earnings with an average analyst price target of $42.22 (compared to the current share price of $43.89).
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