Vista Outdoor ( NYSE: VSTO ) stock slid sharply on Thursday after cutting full year forecasts to levels well below expectations.
For the fiscal second quarter, the Minnesota-based outdoor sports and equipment company narrowly exceeded analyst estimates despite a 12% drop in gross profits and a 22% increase in expenses. A strong increase in organic sales of outdoor products was credited for the performance in the quarter.
"We continue to operate in a challenging global macroeconomic and geopolitical environment that has negatively impacted demand for our products and driven significantly higher costs over the last year,” CEO Chris Metz. “However, despite these headwinds, we posted another strong quarter with an increase in sales and continued strong profitability.”
Despite the confident comments, the company made significant cuts to full year EPS and revenue forecasts which reeled in any optimism on Thursday.
The company now anticipates full fiscal year sales to range from $3.05B to $3.15B, down from a prior outlook of $3.20B to $3.325B. Meanwhile, full year EPS expectations were slashed to a range of $6.00 to $6.50 from a previous forecast of $7.05 to $7.65. Both updated figures fall well below the analyst consensus of $3.26B and $7.24, respectively.
Shares fell to a low of $24.28 before moderating declines to about a 12% drop on Thursday morning.
Read more on the details of the quarter .
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Vista Outdoor stock slumps over 12% after slashing guidance