American Outdoor Brands Stock Crashes on First-Quarter Loss, Lowered Guidance

Shares of the firearms manufacturer were plummeting over 16% after it reported a first-quarter loss.
By Giovanni Bruno ,

Shares of American Outdoor Brands (AOBC) - Get Report , the parent of gunmaker Smith & Wesson, were plummeting over 16% in extended-hours trading on Thursday after the arms manufacturer reported a loss for its first quarter.

After Thursday's close, American Outdoor Brands reported a loss of $2.2 million, or 4 cents a share, on revenue of $129 million. Analysts were expecting earnings of 11 cents per share on revenue of $148 million. For the same period a year ago, the company posted earnings of 62 cents per share on revenue of $207 million.

"Our financial results for the first quarter reflected lower than anticipated shipments in our Firearms business, consistent with a softening in wholesaler and retailer orders," American Outdoor Brands CEO James Debney said.

The company also lowered its full-year 2018 estimates to adjusted earnings per share of between $1.04 and $1.24 compared with between $1.42 to $1.62 previously. It also cut its revenue target to a range of $700 million to $740 million from $750 million to $790 million.

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