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Is A Beat In Store For American Outdoor's (AOBC) Q3 Earnings?

ByZacks Investment Research
Published 03/01/2020, 09:34 PM
Updated 07/09/2023, 06:31 AM

American Outdoor Brands Corporation (NASDAQ:AOBC) is scheduled to release third-quarter fiscal 2020 results on Mar 5. In the last reported quarter, the company delivered a positive earnings surprise of 12.5%. Also, it has trailing four-quarter positive earnings surprise of 9.1%, on average.

Q3 Expectations

The Zacks Consensus Estimate for fiscal third-quarter earnings is pegged at 25 cents. In the year-ago quarter, the company had reported earnings of 16 cents per share. In the past 30 days, the company’s earnings estimates have moved north by a couple of cents. For quarterly revenues, the consensus mark is at nearly $197.8 million. The projected figure suggests a 22.1% increase from the prior-year quarter’s levels.

Let’s discuss the factors that are likely to get reflected in American Outdoor’s third-quarter fiscal 2020 performance.

American Outdoor Brands Corporation Price and EPS Surprise

American Outdoor Brands Corporation price-eps-surprise | American Outdoor Brands Corporation Quote

Factors at Play

American Outdoor’s performance in fiscal third quarter is likely to have benefited from increase in consumer demand for firearms as well as accessories that include lights, lasers and scopes. Morever, the launch of 106 new firearm skus and Performance Center M&P 380 Shield EZ bode well. American Outdoor is also focusing on innovations and expansion of addressable market to support organic growth strategy. However, higher operating expenses are a concern.

What the Zacks Model Says

Our proven model does not conclusively predict an earnings beat for American Outdoor this time around. A stock needs to have a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) to beat earnings. This is not the case here, as you will see below.

Earnings ESP: American Outdoor Brands has an Earnings ESP of 10.20%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: American Outdoor Brands has a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.

Other Stock With Favorable Combinations

Here are some other companies that investors may consider as our model shows that these have the right combination of elements to post earnings beat this season:

Abercrombie & Fitch Company (NYSE:ANF) has an Earnings ESP of +0.12% and a Zacks Rank #3.

G-III Apparel Group, LTD. (NASDAQ:GIII) has an Earnings ESP of +2.71% and a Zacks Rank #2.

Dollar Tree, Inc. (NASDAQ:DLTR) has an Earnings ESP of +0.32% and a Zacks Rank #3.

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Dollar Tree, Inc. (DLTR): Free Stock Analysis Report

Abercrombie & Fitch Company (ANF): Free Stock Analysis Report

G-III Apparel Group, LTD. (GIII): Free Stock Analysis Report

American Outdoor Brands Corporation (AOBC): Free Stock Analysis Report

Original post

Zacks Investment Research

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