The big news heading into American Outdoor Brands' (NASDAQ: AOBC) fiscal second quarter earnings report is, of course, the decision to split the company in two. Separating the outdoor gear and equipment maker from its Smith & Wesson firearms brand distances the former to pursue the much larger outdoor recreational market opportunity without the distraction of the volatile and politically charged gun business.
What investors will be looking for on Thursday, Dec. 5, is whether American Outdoor and Smith & Wesson will be financially sound companies. The split won't happen until next year, but the seeds of what the businesses will look like are being planted now.
Image source: Getty Images.