American Outdoor Brands Corp (NASDAQ:AOBC) disappointed in its latest quarterly earnings report as sales were hit hard.
The company — which makes Smith & Wesson guns and other firearms — said that the demand for handguns is on the decline and it will continue to fall over the next year or possibly more. The gun manufacturer brought in net income of $11.4 million, or 21 cents per share.
On an adjusted basis, American Outdoor Brands earned 9 cents per share, a steep decline from the 66 cents per share it earned during the year-ago period. The figure did beat analysts’ expectations of 8 cents per share, according to data compiled by FactSet.
The company’s revenue came in at $157.4 million, also falling from the $233.5 million it raked in during the year-ago period. Analysts were calling for revenue of $172.5 million, according to FactSet.
For its fiscal fourth quarter, American Outdoor Brands is calling for adjusted earnings of 9 cents to 11 cents per share, below the Wall Street consensus estimate of 38 cents per share. The company also sees its revenue as being in the range of $162 million to $166 million, below analysts’ expectations of $205.6 million.
“Going forward, we will operate our business under the assumption that the next 12-18 months could deliver flattish revenues in firearms,” CEO James Debney said in a statement during the company’s earnings call.
AOBC stock plummeted 18.7% after the bell Thursday on the sales decline.