American Outdoor Brands Corp | $AOBC Stock | Shares Spike Down Despite Beating Q4 Earnings

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American Outdoor Brands Corporation (NASDAQ: AOBC)

 

American Outdoor Brands Corporation (AOBC), a national company that sells firearm products and accessories yesterday reported their fiscal fourth quarter 2017 financial results. American reported fourth quarter profits of $27.7 million.

American  reported fourth quarter adjusted earnings of $0.57 per share which beat analyst expectations of $0.38 per share. American reported fourth quarter revenues of $229.2 million which beat analyst expectations of $209.5 million.  

 

 

American Outdoor Brands Corporation CMO’s  Comments

James Debney, American Outdoor Brands Corporation President and Chief Executive Officer, commented, “Record level revenue and profitability reflected successful execution across our strategic growth objectives, further validating our vision of being the leading provider of quality products for the shooting, hunting, and rugged outdoor enthusiast. During fiscal 2017, we rebranded our holding company name to better reflect our expansion into new and larger markets.  Accordingly, we are organized into two segments – Firearms and Outdoor Products & Accessories – providing a broad foundation for long-term organic and inorganic growth.  PR Newswire

 

AOBC Technical Analysis

American Outdoor Brands

AOBC opened trading yesterday at $23.62 which was down from the previous day’s trading close of $23.54. AOBC closed trading yesterday at $23.94 and crashed down after market to $21.70, equivalent to a 9% decrease from the closing price. Taking a look at the daily chart we can see the last time AOBC traded below these levels we have to go back to May 8th when it traded at $21.03.

Taking a closer look at the daily chart we can see that before the spike down AOBC had been in an overall upward trend dating back to March 24th when it traded at $18.73. AOBC has a float of 55.46 million shares and traded 2.34 times the normal daily trading volume on Thursday.

For trading purposes, I would like to see AOBC open trading on Friday below $22.50 or the VWAP and if it does I would be looking to take a short position at the bell. My stop loss would be $0.25 from my entry position fearing anything more than that and the stock would start to fill in the gap down.

 

Company Profile

American Outdoor Brands Corporation manufactures and sells firearm products and accessories. The company operates in two segments, Firearms and Accessories. It offers handguns, long guns, hunting rifles, black powder firearms, handcuffs and restraints, and firearm-related products. The company also provides accessories, such as reloading, gunsmithing tools, gun cleaning supplies, tree saws, shooting and field rests, gun vises, hearing protection, ammo tumblers, and vault accessories.

It sells its products under the Smith & Wesson, M&P, Thompson/Center Arms, Caldwell Shooting Supplies, Wheeler Engineering, Tipton Gun Cleaning Supplies, Frankford Arsenal Reloading Tools, Lockdown Vault Accessories, Hooyman Premium Tree Saws, BOG-POD, and Golden Rod Moisture Control brands.

In addition, the company sells parts of other brands; operates a private law enforcement training facility; provides metal processing and finishing services comprising tooling, forging, heat treating, finishing, plating, and plastic injection molding, as well as engineering support services to third-party customers; and licenses trademarks to third parties. It serves gun enthusiasts; collectors; hunters; sportsmen; competitive shooters; individuals desiring home and personal protection; law enforcement and security agencies and officers; and military agencies.

The company markets products through dealers, retailers, in-store retail channels, and range operations utilizing consumer-focused product marketing and promotional campaigns; social and electronic media; and in-store retail merchandising systems and strategies. It also operates Websites; and online retail stores that sells hunting and shooting accessories, branded products, apparel, and related shooting supplies.

The company was formerly known as Smith & Wesson Holding Corporation and changed its name to American Outdoor Brands Corporation in January 2017. The company was founded in 1852 and is based in Springfield, Massachusetts.”  Yahoo Finance

 

 

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