American Outdoor Brands (NASDAQ:AOUT) Releases Quarterly Earnings Results, Beats Estimates By $0.27 EPS

American Outdoor Brands (NASDAQ:AOUT) released its earnings results on Thursday. The company reported $0.03 EPS for the quarter, beating the consensus estimate of ($0.24) by $0.27, FiscalAI reports. American Outdoor Brands had a positive return on equity of 2.87% and a negative net margin of 1.97%.The company had revenue of $37.25 million during the quarter, compared to analysts’ expectations of $35.64 million.

Here are the key takeaways from American Outdoor Brands’ conference call:

• American Outdoor Brands reported a strong start to fiscal 2027, with first-quarter net sales rising 25.4% to $37.3 million and adjusted EBITDA improving to $1.2 million from a $3.1 million loss. Growth was broad-based across outdoor lifestyle and shooting sports, supported by stronger retailer replenishment, e-commerce, direct-to-consumer, and international sales.
• Innovation remained a key growth and margin driver: new products represented 36% of Q1 sales, well above the company’s historical 20%-25% range. Caldwell’s Claymore and ClayCopter products were highlighted as major contributors, while BUBBA’s paid subscriptions reached the six-figure dollar range on a trailing-12-month basis.
• Gross margin expanded 630 basis points to 53%, aided by new-product margins, favorable channel mix, pricing actions, and e-commerce growth. The company raised fiscal 2027 adjusted EBITDA guidance to $14.5 million-$17.5 million from $13 million-$16 million, while maintaining net sales guidance of $200 million-$210 million.
• The balance sheet remained strong, with $33.3 million in cash, no debt, and more than $120 million of total available capital. Operating cash flow was $13 million in Q1, compared with a $1.7 million use of cash in the prior-year quarter.
• Tariff costs are expected to pressure gross margin beginning in the third quarter, with the full quarterly impact reflected in Q4 as capitalized tariff costs flow through inventory. Management also noted measured consumer spending and continued pressure on entry-level and mid-priced outdoor products.

American Outdoor Brands Price Performance

Shares of American Outdoor Brands stock opened at $14.48 on Friday. American Outdoor Brands has a 1-year low of $6.26 and a 1-year high of $14.97. The business’s fifty day moving average price is $12.57 and its two-hundred day moving average price is $10.47. The company has a market capitalization of $182.74 million, a P/E ratio of -46.71 and a beta of 0.27.

Hedge Funds Weigh In On American Outdoor Brands

Several large investors have recently bought and sold shares of AOUT. Russell Investments Group Ltd. boosted its stake in American Outdoor Brands by 3.5% during the 2nd quarter. Russell Investments Group Ltd. now owns 38,852 shares of the company’s stock valued at $406,000 after purchasing an additional 1,296 shares in the last quarter. Barclays PLC raised its holdings in shares of American Outdoor Brands by 11.0% in the 4th quarter. Barclays PLC now owns 19,271 shares of the company’s stock worth $149,000 after purchasing an additional 1,902 shares in the last quarter. Empowered Funds LLC lifted its stake in American Outdoor Brands by 8.4% during the first quarter. Empowered Funds LLC now owns 25,399 shares of the company’s stock valued at $309,000 after purchasing an additional 1,972 shares during the last quarter. Bridgeway Capital Management LLC grew its position in American Outdoor Brands by 1.8% in the second quarter. Bridgeway Capital Management LLC now owns 124,386 shares of the company’s stock worth $1,300,000 after buying an additional 2,180 shares during the last quarter. Finally, Comerica Bank increased its holdings in shares of American Outdoor Brands by 203.6% in the third quarter. Comerica Bank now owns 3,504 shares of the company’s stock valued at $30,000 after buying an additional 2,350 shares in the last quarter. Institutional investors and hedge funds own 49.87% of the company’s stock.

Analyst Ratings Changes

A number of research analysts have commented on AOUT shares. Wall Street Zen raised American Outdoor Brands from a “buy” rating to a “strong-buy” rating in a report on Saturday. Lake Street Capital reissued a “buy” rating and set a $16.00 price target on shares of American Outdoor Brands in a research report on Friday. Roth Capital reaffirmed a “buy” rating and issued a $17.00 price objective (up from $13.50) on shares of American Outdoor Brands in a report on Friday. Zacks Research lowered shares of American Outdoor Brands from a “strong-buy” rating to a “hold” rating in a research note on Tuesday, August 25th. Finally, Weiss Ratings reissued a “sell (d-)” rating on shares of American Outdoor Brands in a report on Wednesday, June 24th. Two research analysts have rated the stock with a Buy rating, one has given a Hold rating and one has issued a Sell rating to the company’s stock. According to data from MarketBeat, the company has a consensus rating of “Hold” and an average target price of $16.50.

Key American Outdoor Brands News

Here are the key news stories impacting American Outdoor Brands this week:

• Positive Sentiment: Q1 results exceeded expectations: AOUT reported adjusted EPS of $0.03, compared with the consensus estimate of a $0.24 loss and a $0.26 loss a year earlier. Revenue rose 25.4% to $37.25 million, surpassing estimates of $35.64 million. American Outdoor Brands Q1 Earnings and Revenues Beat Estimates
• Positive Sentiment: Profitability improved materially: The company swung to adjusted earnings, narrowed its reported loss, and cited operating leverage and cost discipline as key drivers of the improvement. American Outdoor Brands Fiscal Q1 Swings to Adjusted Earnings
• Positive Sentiment: Guidance was raised: Management increased fiscal 2027 adjusted EBITDA guidance to $14.5 million-$17.5 million and provided revenue guidance of $200 million-$210 million, broadly in line with the $205.1 million consensus estimate. American Outdoor Raises Fiscal 2027 EBITDA Guidance
• Positive Sentiment: Turnaround narrative strengthened: Investors are responding to new-product innovation, growth across e-commerce and traditional retail channels, and a $33.3 million net-cash position, which supports financial flexibility. American Outdoor Brands Shoots Higher as Turnaround Gains Momentum
• Neutral Sentiment: The stock’s move was notable for exceptionally heavy trading volume, indicating substantial investor interest but also the potential for elevated short-term volatility.
• Negative Sentiment: AOUT remains unprofitable on a GAAP net-income basis, with a negative net margin, and shares initially traded lower in premarket activity before the broader investor reaction turned positive. American Outdoor Brands Q1 Loss Narrows and Raises EBITDA Guidance

American Outdoor Brands Company Profile

American Outdoor Brands, Inc designs, manufactures and distributes a broad range of outdoor sports and recreational products for consumers and commercial end users. Through its Shooting & Accessories and Functional Outdoor Approaches segments, the company offers shooting sports equipment, hunting and fishing accessories, archery gear, tactical and personal defense solutions, outdoor apparel, fitness products and knife and tool categories. Its portfolio encompasses well-known brands such as Wheeler®, Tipton®, Caldwell®, Hogue®, Manticore Arms® and other specialty labels.

Formed as a standalone public company in 2016 following a spin-off from Smith & Wesson, American Outdoor Brands has its headquarters in Columbia, Missouri, with manufacturing, distribution and sales operations across North America.