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American Outdoor Drops; Analysts Lukewarm on Outlook

American Outdoor shares fell after the sporting-goods retailer swung to a quarterly profit but offered what one analyst called a tepid forecast.
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American Outdoor Brands  (AOUT) - Get AMERICAN OUTDOOR BRANDS, INC. Report shares fell after the sporting-goods retailer swung to a quarterly profit but offered what one analyst called a tepid forecast.

In the fourth quarter ended April 30 the Columbia, Mo., company swung to GAAP profit of 9 cents a share from a loss of $6.49 a share in the year-earlier quarter. The latest adjusted profit was 34 cents a share.

Revenue jumped 50% to $64.5 million.

Analysts surveyed by FactSet were expecting a GAAP loss of 4 cents, or an adjusted profit of 23 cents, on revenue of $65 million.

For fiscal 2022, the company expects GAAP earnings per share of $1 to $1.24, or an adjusted $2.02 to $2.26. Revenue should come in at $280 million to $295 million.

FactSet's survey for the full year is calling for GAAP earnings of $1.46 a share, or an adjusted $2.12, on revenue of $289.2 million.

American Outdoor recently traded at $28.80, down 20%. The shares remain up 45% over the past six months amid strong demand for goods related to outdoor activities.

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Among the analysts. B. Riley’s Eric Wold raised his price target to $46 from $44 and affirmed his buy rating.

He expected “some level of ‘sell the news,’" as AOUT’s guidance was only in line with analyst forecasts and the shares have risen sharply, Bloomberg reports.

Friday’s stock drop shows a “short-sighted view” by investors, he said. The company’s guidance should “alleviate post-pandemic pullback concerns.”

Meanwhile, CL King analyst Scott Stember affirmed his buy rating and $38 price target. 

The “tepid” guidance reflects difficult comparisons, he said, according to Bloomberg.

He trimmed his EPS projection for fiscal 2022 to $2.26 from $2.38. That’s due to supply-chain constraints and more normalized costs with a return of trade shows.

In other sports-related news Friday, FuboTV  (FUBO) - Get FUBOTV INC. Report said its gaming subsidiary would offer sportsbook service in Pennsylvania through an agreement with real estate developer Cordish.

Cordish owns Live! Casino & Hotel Philadelphia and Live! Casino Pittsburgh and provides statewide mobile access for sports betting and iGaming.