Outdoor (NASDAQ:POWW) Issues Earnings Results

Outdoor (NASDAQ:POWW) issued its quarterly earnings results on Monday. The company reported $0.02 earnings per share (EPS) for the quarter, FiscalAI reports. The firm had revenue of $14.48 million for the quarter, compared to analyst estimates of $13.02 million. Outdoor had a return on equity of 1.90% and a net margin of 12.08%.

Here are the key takeaways from Outdoor’s conference call:

• Strong earnings turnaround: Q1 net revenue rose 22.1% to $14.5 million, adjusted EBITDA increased 152% to $7.9 million, and operating cash flow improved to $4.4 million from a $6.7 million outflow a year ago.
• Marketplace performance remained healthy, with GMV up 18.1% to $223.7 million, higher average order value and conversion, and firearm unit sales growing 11.6% versus a 5.3% increase in adjusted NICS. Excluding Virginia, GMV still increased approximately $23 million year over year.
• New monetization initiatives are gaining traction: FFL transfer services contributed $0.9 million of revenue and 39 basis points to the take rate in their first quarter, while management expects profitability and gross-margin contribution to improve as implementation costs subside.
• Operating expenses fell 45% year over year as legal, restructuring, and other legacy costs declined, while cash rose to $68.8 million despite $2 million of share repurchases, a preferred dividend, and debt repayment. The company has $12 million remaining under its repurchase authorization.
• Management cautioned against extrapolating Q1 results: Virginia-related legislation pulled demand forward, June momentum slowed, and summer is seasonally weaker. The company also noted that firearms demand can be affected by shifting legislation, litigation, and political developments.

Outdoor Price Performance

NASDAQ:POWW traded down $0.03 during trading hours on Wednesday, reaching $2.29. The company had a trading volume of 137,504 shares, compared to its average volume of 655,191. The stock has a 50-day moving average of $2.21 and a two-hundred day moving average of $2.06. Outdoor has a one year low of $1.21 and a one year high of $2.67. The firm has a market capitalization of $266.59 million, a PE ratio of 76.53 and a beta of 1.02. The company has a quick ratio of 3.96, a current ratio of 3.96 and a debt-to-equity ratio of 0.04.

Institutional Investors Weigh In On Outdoor

Several institutional investors and hedge funds have recently made changes to their positions in POWW. BNP Paribas Financial Markets boosted its position in Outdoor by 101.4% in the 3rd quarter. BNP Paribas Financial Markets now owns 18,437 shares of the company’s stock valued at $27,000 after buying an additional 9,283 shares during the last quarter. Renaissance Technologies LLC increased its stake in shares of Outdoor by 1.9% in the 4th quarter. Renaissance Technologies LLC now owns 576,000 shares of the company’s stock valued at $985,000 after buying an additional 10,800 shares during the period. Geode Capital Management LLC raised its position in shares of Outdoor by 0.6% during the second quarter. Geode Capital Management LLC now owns 2,134,270 shares of the company’s stock worth $2,733,000 after acquiring an additional 11,729 shares during the last quarter. Barclays PLC lifted its stake in shares of Outdoor by 10.6% during the fourth quarter. Barclays PLC now owns 135,012 shares of the company’s stock valued at $231,000 after acquiring an additional 12,952 shares during the period. Finally, Focus Partners Wealth boosted its holdings in Outdoor by 2.5% in the first quarter. Focus Partners Wealth now owns 545,742 shares of the company’s stock valued at $753,000 after acquiring an additional 13,130 shares during the last quarter. Institutional investors and hedge funds own 26.40% of the company’s stock.

Wall Street Analysts Forecast Growth

POWW has been the topic of a number of research reports. Zacks Research upgraded Outdoor from a “hold” rating to a “strong-buy” rating in a research report on Wednesday, June 24th. Weiss Ratings cut Outdoor from a “sell (d+)” rating to a “sell (d-)” rating in a research report on Tuesday, June 23rd. Finally, Roth Capital reiterated a “buy” rating on shares of Outdoor in a research note on Tuesday. One equities research analyst has rated the stock with a Strong Buy rating, two have assigned a Buy rating and one has issued a Sell rating to the company. Based on data from MarketBeat, the company has an average rating of “Moderate Buy” and a consensus target price of $2.62.

About Outdoor

AMMO, Inc designs, produces, and markets ammunition and ammunition component products for sport and recreational shooters, hunters, individuals seeking home or personal protection, manufacturers, and law enforcement and military agencies. The company's products include STREAK Visual Ammunition that enables shooters to see the path of the bullets fired by them; and Stelth Subsonic ammunition primarily for suppressed firearms. It also owns and operates GunBroker.com, an auction site that supports the lawful sale of firearms, ammunition, and hunting/shooting accessories.