AOBC - Why Shares of American Outdoor Brands Are Plunging Today
Shares of American Outdoor Brands (NASDAQ: AOBC) fell more than 35% on Friday after the firearms and sporting goods manufacturer delivered weaker-than-expected quarterly results and provided tepid guidance. On a down day for markets, the company's commentary sent investors rushing for the exits.
American Outdoor Brands reported adjusted fiscal third-quarter earnings of $0.13 per share on revenue of $166.7 million, falling well short of analyst expectations for $0.23 per share in earnings on sales of $187 million. The company actually got a $10 million sales benefit in the quarter from a change in the timing of its federal excise tax assessment.
The company blamed the shortfall on lower-than-anticipated orders from certain retailers across firearm categories, and the bankruptcy or financial distress of some retail customers.