American Outdoor Brands Corp (AOBC) Shares Tank on Q1 Loss

American Outdoor Brands Corp (NASDAQ:AOBC) took a massive hit on Friday following the company’s Thursday earnings report.

American Outdoor Brands Corp (AOBC)
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In its fiscal first-quarter 2018 earnings call, the company lost a disappointing $2.2 million, amounting to a loss of four cents per share. American Outdoor Brands posted positive earnings in the year-ago period.

On an adjusted basis, the company earned two cents per share, well below the consensus estimate of 11 cents per share. Revenues also underwhelmed for American Outdoor Brands, coming in at $129 million.

The figure was $19 million below the figure predicted by analysts polled by Zacks Investment Research of $148 million. Revenue was down 37.7% compared to the year-ago sales figure of $207 million.

Gross margin for the quarter was a meek 31.5%, compared with 42.3% in the year-ago period. Total operating expenses were higher at $43.8 million, a 21.5% year-over-year hike from $35 million.

These expenses were seen in the general and administrative expenses, which rose 23.8%, selling and marketing expenses, increased by 27.4%, and research and development expenses, 29.5% higher.

Cash outflow from operating activities in the first period of the current fiscal year was $34.5 million. A year ago, this inflow was $40.6 million.

The company also updated its full-year earnings outlook to be in the range of $1.04 to $1.24 per share, while the revenue forecast calls for sales between $700 million and $740 million.

AOBC stock plummeted 17.9% on Friday as the earnings report was released late in the day Thursday.

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