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American Outdoor Brands pops after Smith & Wesson gun maker shoots past Street's fiscal 2Q estimates

The maker of Smith & Wesson guns posted a profit of $6.7 million, or $0.12 per share, in its latest quarter
Looking ahead, the Massachusetts company expects full-year earnings in the range of $0.69 to $0.73 per share

Shares of American Outdoor Brands Corp (NASDAQ:AOBC) are gaining traction in Friday’s pre-market session after the maker of Smith & Wesson guns zipped past Wall Street’s earnings and revenue estimates in its fiscal second quarter.

In its latest quarter ending October 31, the gun manufacturer, which is based in Springfield, Massachusetts, posted a profit of $6.7 million, or $0.12 per share, which was more than double the $3.2 million, or $0.06 per share reported in the year-ago quarter. Stripping out items, the company’s earnings came to $0.20 per share while its sales clocked in at $161.7 million.

READ: American Outdoor reports another round of sluggish gun sales in fiscal 4Q

The results handily beat the consensus estimates of Wall Street analysts who had called for earnings of $0.14 per share on revenue of $154.1 million.

In response, investors sent American Outdoor Brands shares up by 14.7% to $14.00 before the opening bell on Friday.

CEO James Debney attributed the company’s robust sales to a surge in demand for the company’s hunting and shooting products and its new M&P Shield 380 EZ pistol in particular.

“In our Firearms segment, revenue growth reflected the success of our ‘bundle’ promotion booked earlier in the year and shipped in the second quarter,” noted Debney in a statement.

“New firearm products, which we define as products launched within the past 12 months, represented 26.6% of our firearm revenue in the quarter and included strong sales of our M&P Shield 380 EZ pistol, which we launched in February of this year.”

For the current quarter, which finishes at the close of January, the firearm maker projects its per-share earnings will fall between $0.09 to $0.13 while sales will hover between $155 million to $165 million.

Looking ahead, the company anticipates full-year earnings in the range of $0.69 to $0.73 per share.

Contact Ellen Kelleher at [email protected]

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