2023-05-04 11:35:59 ET
Vista Outdoor ( NYSE: VSTO ) marked its biggest one-day gain in about 3 years on Thursday after topping earnings expectations on Wednesday evening.
The Minnesota-based outdoor products manufacturer notched $1.08 in adjusted earnings per share, topping the $0.89 analyst consensus. Meanwhile, about an 8% decline in revenue as compared to Q1 2022 to $740.74M was about $9.38M above the Street consensus.
“Our business faced a number of headwinds in our fiscal year 2023 that were met head on by our team with decisive actions to deliver a solid performance and maintain a healthy balance sheet,” CEO Gary McArthur said. “Our Sporting Products segment had another strong year of sales and profitability as the market continues to normalize and experience lower sales volumes in certain calibers. Our culture of innovation has powered this business forward and combined with product mix improvements, we have successfully offset higher input costs. We expect the market to continue to normalize in fiscal year 2024 and remain confident in our ability to achieve mid-20s percentage point EBITDA margins long-term, well above pre-pandemic levels.”
He added that while the outdoor products segment is still wading through an environment of elevated inventory levels, merchandise trends are expected to inflect in the latter half of the year.
The company sees between $2.85B and $2.95B in revenue for the full year and between $4.50 and $5 in EPS for the year. Consensus estimates for EPS and revenue stand at $4.68 and $3.05B, respectively.
Shares of Vista Outdoors ( VSTO ) surged 16.47% in midday trading on Thursday. Dig into the details of the results .
For further details see:
Vista Outdoors stock accelerates on earnings beat