Vista Outdoor (VSTO) Reports Q1: Everything You Need To Know Ahead Of Earnings

Sports and recreation company (NYSE:VSTO) will be reporting earnings tomorrow after market close. Here's what to look for.

Vista Outdoor met analysts' revenue expectations last quarter, reporting revenues of $682.3 million, down 9.6% year on year. It was a weak quarter for the company, with a miss of analysts' earnings estimates.

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 5.2% year on year to $702.1 million, improving from the 8.4% 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 twice over the last two years.

Looking at Vista Outdoor's peers in the leisure products segment, some have already reported their Q1 results, giving us a hint as to what we can expect. Johnson Outdoors's revenues decreased 13% year on year, beating analysts' expectations by 10.8%, and Brunswick reported a revenue decline of 21.7%, in line with consensus estimates. Johnson Outdoors traded down 11.7% following the results while Brunswick was also down 5.8%.

Read our full analysis of Johnson Outdoors's results here and Brunswick's results here.

Investors in the leisure products segment have had fairly steady hands going into earnings, with share prices down 1.9% on average over the last month. Vista Outdoor is up 7.3% during the same time and is heading into earnings with an average analyst price target of $37 (compared to the current share price of $36.06).

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