American Outdoor to Post Q4 Earnings: What's in Store?

American Outdoor Brands, Inc. AOUT is scheduled to report fourth-quarter fiscal 2024 results on Jun 27, after the closing bell. In the last reported quarter, AOUT's earnings beat the Zacks Consensus Estimate by 14.3%.

Q4 Estimates

The Zacks Consensus Estimate for fourth-quarter fiscal 2024 earnings is pegged at 1 cent. In the prior-year quarter, it reported adjusted earnings of 6 cents. Estimate revisions have remained stable in the past 30 days. The consensus mark for revenues is pegged at $43.2 million, implying a 2.4% year-over-year increase.

Factors to Note

The company's top line is likely to have been bolstered by strong sales in the outdoor lifestyle category, particularly from hunt and fishing sales, as well as in shooting sports, thanks to the clearance of slow-moving inventory and increased sales of shooting accessories. Additionally, AOUT continues to benefit from the introduction of new products.
However, high costs are anticipated to have negatively impacted the company's bottom line. Rising competition in the outdoor and shooting sports markets could put pressure on sales and pricing, which will negatively impact earnings.

What Our Model Says

Our proven model doesn't conclusively predict an earnings beat for American Outdoor this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. This is not the case here.
Earnings ESP: AOUT has an Earnings ESP of 0.00%.
Zacks Rank: AOUT carries a Zacks Rank #3 at present.

Stocks to Consider

Here we present three stocks you may want to consider as our model shows that these have the right combination of elements to post an earnings beat this season.
Hasbro, Inc. HAS currently has an Earnings ESP of +7.72% and a Zacks Rank of 1.
HAS's earnings for the to-be-reported quarter are expected to increase 55.1%. It reported better-than-expected earnings in two of the trailing four quarters and missed the other two, with a negative surprise of 17.5% on average.
MGM Resorts International MGM has an Earnings ESP of +8.13% and a Zacks Rank of 3 at present.
MGM is expected to register a 17.1% increase in earnings for the to-be-reported quarter. It reported better-than-expected earnings in all of the trailing four quarters, with an earnings surprise of 27.3%, on average.
Choice Hotels International, Inc. CHH currently has an Earnings ESP of +0.22% and a Zacks Rank of 3.
CHH's earnings for the to-be-reported quarter are expected to increase 6.3%. It reported better-than-expected earnings in three of the trailing four quarters and missed the other, the average surprise being 4.6%.
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