American Outdoor Brands (NASDAQ:AOBC) is scheduled to release fourth-quarter fiscal 2019 results on Jun 19, after the opening bell.
In the last reported quarter, the company delivered a positive earnings surprise of 33.33%. Also, it has an average four-quarter beat of 70.09%.
Let’s take a detailed look at the factors influencing American Outdoor Brands’ upcoming results.
Factors at Play
Lately, the U.S. firearms market is showing notable signs of weakness. During the fiscal fourth quarter, the NICS firearm background checks witnessed a 4% decline year over year. This indicates reduced firearms sales during the quarter, which in turn might have kept American Outdoor Brands’ top line under pressure.
The Zacks Consensus Estimate for fourth-quarter revenues is pegged at $168.4 million, indicating a 2.1% drop from the year-ago quarter reported number.
Moreover, the company expects to witness some duplicate expense in the short term owing to the ramp-up of the new logistics facility. Such expenses along with dismal top-line performance might have hurt American Outdoor Brands’ bottom line in the soon-to-be-reported quarter.
In line with this, the Zacks Consensus Estimate for earnings in the fiscal fourth quarter is pegged at 17 cents, implying a 29.2% decline from the prior-year reported figure.
American Outdoor Brands Corporation Price and EPS Surprise
American Outdoor Brands Corporation price-eps-surprise | American Outdoor Brands Corporation Quote
What the Zacks Model Unveils
Our proven model shows that American Outdoor Brands is likely to beat estimates in the fiscal fourth quarter. This is because a stock needs to have both — a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) — for this to happen.
Earnings ESP: American Outdoor Brands has an Earnings ESP of +9.09%. 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.
We caution against stocks with a Zacks Rank #4 or 5 (Sell rated) going into the earnings announcement, especially when the company is seeing negative estimate revisions.
Other Defense Releases
Textron Inc. (NYSE:TXT) reported first-quarter 2019 earnings from continuing operations of 76 cents per share, which surpassed the Zacks Consensus Estimate of 70 cents by 8.6%.
Lockheed Martin Corp. (NYSE:LMT) reported first-quarter 2019 earnings of $5.99 per share, which outshined the Zacks Consensus Estimate of $4.29 by 39.6%.
Hexcel Corporation (NYSE:HXL) reported first-quarter 2019 earnings of 84 cents per share, which exceeded the Zacks Consensus Estimate of 79 cents by 6.3%.
Today's Best Stocks from Zacks
Would you like to see the updated picks from our best market-beating strategies? From 2017 through 2018, while the S&P 500 gained +15.8%, five of our screens returned +38.0%, +61.3%, +61.6%, +68.1%, and +98.3%.
This outperformance has not just been a recent phenomenon. From 2000 – 2018, while the S&P averaged +4.8% per year, our top strategies averaged up to +56.2% per year.
See their latest picks free >>
Lockheed Martin Corporation (LMT): Free Stock Analysis Report
American Outdoor Brands Corporation (AOBC): Free Stock Analysis Report
Hexcel Corporation (HXL): Free Stock Analysis Report
Textron Inc. (TXT): Free Stock Analysis Report
Original post
Zacks Investment Research