What To Expect From American Outdoor Brands’s (AOUT) Q2 Earnings

Recreational products manufacturer American Outdoor Brands (NASDAQ:AOUT) will be announcing earnings results tomorrow after market close. Here’s what to expect.

American Outdoor Brands beat analysts’ revenue expectations by 7.3% last quarter, reporting revenues of $46.3 million, up 9.7% year on year. It was a mixed quarter for the company, with a miss of analysts’ 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 decline 5.5% year on year to $41.08 million, a deceleration from its flat revenue in the same quarter last year. Adjusted loss is expected to come in at -$0.07 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. 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 leisure products segment, some have already reported their Q2 results, giving us a hint as to what we can expect. Latham’s revenues decreased 9.6% year on year, beating analysts’ expectations by 2.2%, and Harley-Davidson reported revenues up 12%, topping estimates by 27.2%. Latham traded up 42% following the results while Harley-Davidson was also up 8.7%.

Read our full analysis of Latham’s results here and Harley-Davidson’s results here.

There has been positive sentiment among investors in the leisure products segment, with share prices up 4.5% on average over the last month. American Outdoor Brands is up 4% during the same time and is heading into earnings with an average analyst price target of $11 (compared to the current share price of $9.2).

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