While "the trend is your friend" when it comes to short-term investing or trading, timing entries into the trend is a key determinant of success. And increasing the odds of success by making sure the sustainability of a trend isn't easy.The trend often reverses before exiting the trade, leading to a short-term capital loss for investors. So, for a profitable trade, one should confirm factors such as sound fundamentals, positive earnings estimate revisions, etc. that could keep the momentum in the stock aliv ...

American Outdoor Brands, Inc. (AOUT) stock is currently trading at a notable discount relative to the Zacks Leisure and Recreation Products industry. With a forward 12-month Price/Earnings ratio of 14.99x, it sits well below the industry average of 28.75x and the Consumer Discretionary sector’s 17.96x.In the past three months, AOUT shares have gained 8% compared with the industry’s growth of 19.1%. In the same time frame, other stocks like On Holding AG (ONON) , Acushnet Holdings Corp. (GOLF) and Academy Sp ...

Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving ...

The Wall Street rally is back, with the Dow and the S&P 500 hitting fresh highs last week. Positive economic data coupled with the Federal Reserve’s recently announced rate cut is giving a boost to consumer sentiment. On Friday, fresh economic data showed that inflation continued its decline in August.Also, personal income and consumer spending have been steadily increasing. The Federal Reserve’s rate cut is going to ease price pressures further and allow consumers to spend freely ahead of the holiday seaso ...

COLUMBIA, Mo., Sept. 13, 2024 /PRNewswire/ -- American Outdoor Brands, Inc. (NASDAQ Global Select: AOUT), an innovation company that provides product solutions for outdoor enthusiasts, today announced that it will participate in CL King's 22nd Annual Best Ideas Conference (virtual event) on Monday, September 16, 2024.  To attend the American Outdoor Brands event, please reach out to CL King for details.  Investors can access the company's webcast presentation, scheduled for September 16, 2024, at 12:30 p.m. ...

Yves Adams American Outdoor Brands, Inc. (NASDAQ:AOUT) posted disappointing 1Q25 results. The company had guided for growth in FY25 but posted revenues 4% slower than last year in Q1 and guided for revenues down 8/9% in Q2. The shooting category is particularly challenged despite 2024 being an election year, which should generally involve the sale of more firearms. Despite this challenging start, the company maintained its yearly guidance. AOUT's markets remain challenging, but the company is improving in s ...

American Outdoor Brands, Inc. (AOUT) reported first-quarter fiscal 2025 results, wherein both top and bottom lines surpassed the Zacks Consensus Estimate. The company’s top line surpassed the Zacks Consensus Estimate for the sixth straight quarter, whereas the bottom line beat the estimate after missing the preceding quarter.Following the results, the company’s shares increased 4.3% in the after-hour trading session on Sept. 5. AOUT’s Earnings & SalesIn the quarter under review, American Outdoor reported ad ...

Core Viewpoint - American Outdoor Brands, Inc. reported a solid performance in Q1 2025, showcasing significant profitability increases despite a slight decline in net sales year-over-year. The company attributes its success to product innovation and expanded distribution opportunities, which are central to its long-term growth strategy [5][9][15]. Financial Performance - Net sales for Q1 2025 were $41.6 million, a decrease of 4.1% from $43.4 million in Q1 2024. The decline was primarily due to a 7% drop in the shooting sports category and a 1.7% decrease in the outdoor lifestyle category [15][23]. - Adjusted EBITDAs increased by over 76%, reaching approximately $2 million for the quarter, contributing to a trailing 12-month adjusted EBITDA of $10.6 million [9][18]. - GAAP gross margin for Q1 was 45.4%, consistent with the previous year, driven by lower amortization of tariff and freight variances [16][24]. Product Innovation and Market Strategy - New products accounted for about 23% of net sales in Q1, with strong performances from brands like MEAT! and Bubba, which helped offset declines in other areas [13][29]. - The company has generated over $60 million in incremental organic revenue from new products since its spinoff in 2020, reflecting a robust innovation pipeline [9][29]. - The four-pillar growth strategy includes gaining market share, entering new product categories, expanding consumer markets, and increasing distribution channels [8][12]. Distribution and International Growth - The company expanded its distribution channels, introducing products to new retail locations and increasing international sales, which reached $4.4 million, representing over 10% of net sales and a growth of over 21% [12][19]. - The Canadian market is seen as a significant opportunity for growth, with plans to leverage social media and influencer marketing to reach consumers effectively [49]. Outlook and Expectations - For fiscal 2025, the company anticipates net sales growth of up to 2.5%, despite expected declines in Q2 driven by the shooting sports category [22][23]. - Gross margins are expected to remain around 45% for the full year, with fluctuations anticipated based on inventory purchases and amortization of freight costs [24][58]. - The company plans to continue returning capital to shareholders through its share repurchase program, having repurchased approximately 42,000 shares at an average price of $9.06 per share in Q1 [22][19].

Financial Data and Key Metrics Changes - Net sales for Q1 were $41.6 million, a decrease of 4.1% compared to $43.4 million in Q1 last year [15][19] - Adjusted EBITDAs increased by more than 76%, reaching approximately $2 million for the quarter [9][15] - GAAP gross margin for Q1 was 45.4%, flat compared to Q1 last year, driven by lower amortization of tariff and freight variances [16][24] - GAAP EPS for Q1 was a loss of $0.18, an improvement from a loss of $0.31 last year, while non-GAAP EPS was $0.06 compared to $0.01 in Q1 last year [17] Business Line Data and Key Metrics Changes - In the shooting sports category, net sales declined by about 7% year-over-year, with new products partially offsetting declines in personal protection products [10][15] - The outdoor lifestyle category saw a slight decline in net sales of 1.7%, with new products from MEAT! and BUBBA brands performing well [11][15] - New products accounted for approximately 23% of net sales in the first quarter [13] Market Data and Key Metrics Changes - International net sales reached $4.4 million, representing over 10% of total net sales and a growth of over 21% [12] - POS sales in the outdoor lifestyle category were positive, while POS sales in shooting sports were weaker year-over-year [13] Company Strategy and Development Direction - The company focuses on innovation as a core strategy, aiming to gain market share, enter new product categories, and expand distribution [8][9] - The company has generated over $60 million in incremental organic revenue from new products since its spinoff in 2020, reflecting strong innovation vitality [9] - The company expects to deliver growth for fiscal 2025 despite potential quarterly fluctuations [6][23] Management's Comments on Operating Environment and Future Outlook - Management anticipates headwinds in the shooting sports category but remains optimistic about growth in the outdoor lifestyle category due to new product launches and distribution opportunities [22][23] - The company expects fiscal 2025 net sales to grow by as much as 2.5% compared to fiscal 2024 [22][23] - Management noted that consumer behavior remains resilient despite uncertainties related to inflation and the upcoming election [45][54] Other Important Information - The company ended the quarter with a strong cash position of $23.5 million and no debt, allowing for flexibility in capital allocation [19][21] - The company repurchased approximately 42,000 shares at an average price of $9.06 per share during the quarter [22] Q&A Session Summary Question: Performance of new products and future outlook - Management noted that new products generated a significant share of revenue and saw growth in international markets, particularly in Canada [28][29] Question: Current M&A market opportunities - Management indicated that more opportunities are emerging in the outdoor lifestyle segment, with higher quality acquisition targets becoming available [30][33] Question: Update on Grilla rollout and retail shelf spacing - Management confirmed that Grilla products are performing well on Amazon and emphasized the importance of strategic partnerships for retail launches [34][38] Question: Retail partner behavior as hunting season approaches - Management observed a mix of cautious optimism among retailers, with some managing inventories well and others still destocking [42][44] Question: Growth in international markets and distribution facilities - Management expressed optimism about the Canadian market and noted improvements in efficiency from the expanded distribution facility [46][50] Question: Consumer behavior and pricing decisions in shooting sports - Management highlighted the uncertainty in the shooting sports market due to the influx of new firearm owners and the upcoming election [54] Question: Clarification on gross margin expectations - Management clarified that the expected gross margin of 45% for the year is based on better freight rates and a normal promotional environment [58] Question: Impact of election cycle on shooting sports - Management stated that the forecast does not account for any potential bump from the election, focusing instead on current market dynamics [60]

Company Performance - American Outdoor Brands, Inc. (AOUT) reported quarterly earnings of $0.06 per share, exceeding the Zacks Consensus Estimate of a loss of $0.03 per share, and compared to earnings of $0.01 per share a year ago, representing an earnings surprise of 300% [1] - The company posted revenues of $41.64 million for the quarter ended July 2024, surpassing the Zacks Consensus Estimate by 2.82%, although this is a decrease from year-ago revenues of $43.45 million [1] - Over the last four quarters, the company has surpassed consensus EPS estimates three times and topped consensus revenue estimates four times [1] Stock Performance and Outlook - American Outdoor Brands shares have increased by approximately 9.4% since the beginning of the year, while the S&P 500 has gained 15.7% [2] - The company's earnings outlook is crucial for investors, as empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions [3] - The current consensus EPS estimate for the coming quarter is $0.26 on revenues of $60.2 million, and for the current fiscal year, it is $0.49 on revenues of $205.9 million [4] Industry Context - The Leisure and Recreation Products industry, to which American Outdoor Brands belongs, is currently ranked in the bottom 8% of over 250 Zacks industries, indicating potential challenges for stock performance [5] - The performance of American Outdoor Brands may also be influenced by the broader industry outlook, as the top 50% of Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1 [5]