American Outdoor Brands Corp (NASDAQ:AOBC) disappointed in its latest quarterly earnings report as sales were hit hard.
The company — which makes Smith & Wesson guns and other firearms — said that
is on the decline and it will continue to fall over the next year or possibly more. The gun manufacturer brought in net income of $11.4 million, or 21 cents per share.
On an adjusted basis, American Outdoor Brands earned 9 cents per share, a steep decline from the 66 cents per share it earned during the year-ago period. The figure did beat analysts’ expectations of 8 cents per share, according to data compiled by FactSet.
The company’s revenue came in at $157.4 million, also falling from the $233.5 million it raked in during the year-ago period. Analysts were calling for revenue of $172.5 million, according to FactSet.
For its fiscal fourth quarter, American Outdoor Brands is calling for adjusted earnings of 9 cents to 11 cents per share, below the Wall Street consensus estimate of 38 cents per share. The company also sees its revenue as being in the range of $162 million to $166 million, below analysts’ expectations of $205.6 million.
“Going forward, we will operate our business under the assumption that the next 12-18 months could deliver flattish revenues in firearms,” CEO James Debney said in a statement during the company’s earnings call.
AOBC stock plummeted 18.7% after the bell Thursday on the sales decline.
