Sportsman Warehouse (NASDAQ:SPWH) news for Friday concerning a guidance cut for its upcoming fourth quarter has SPWH stock falling hard.
The Sportsman Warehouse news release notes that the company now expects adjusted earnings per share for the quarter to range from 17 cents to 21 cents. That’s bad news for SPWH stock as Wall Street is looking for adjusted EPS of 30 cents for the quarter.
When it comes to revenue, Sportsman Warehouse says it now expects Q4 to come in between $250 million and $254 million. That’s another problem for SPWH stock with analysts’ revenue estimates sitting at $265.26 million.
The negative Sportsman Warehouse news also affects its overall 2019 outlook. It now expects adjusted per-share earnings of 43 cents to 47 cents on revenue between $878 million and $882 million. That doesn’t compare well next to Wall Street’s estimates of 56 cents per share and revenue of $893.50 million.
Jon Barker, Chief Executive Officer of Sportsman Warehouse, has the following to say about the negative SPWH stock news.
“Our fourth quarter financial performance has been negatively impacted by temporary headwinds that were exacerbated by the shorter and more competitive holiday selling season. These headwinds were driven by key competitors discounting their firearm and ammunition inventory as they continue to de-emphasize or completely exit these categories, and difficult year-over-year sales comparisons due to legislative changes in Washington and California.”
SPWH stock was down 15.79% as of Friday afternoon.
As of this writing, William White did not hold a position in any of the aforementioned securities.