American Outdoor Brands Corp. shares were soaring Friday after the gunmaker reported earnings and guidance that beat expectations.
The stock rose Friday as much as 20%. It was up 13.55% at last check to $13.86 a share.
Revenue for the company’s second fiscal quarter was $161.7 million, beating Wall Street’s expectations of $154.1 million. Earnings were 20 cents a share, beating estimates of 14 cents. That’s an 82% year-over-year increase, as the company posted EPS of 11 cents in the second quarter of 2018. Net income was $6.7 million.
“Our Outdoor Products & Accessories segment, a strategically important market that we first entered just four years ago, generated approximately one-third of our revenue in the quarter,” said President and CEO James Debney. He added, “We are pleased with our second quarter operational and financial results, which reflect year-over-year increases in revenue and profitability in both our Outdoor Products & Accessories segment and our Firearms segment.”
The firearms maker also issued better guidance than Wall Street was expecting. For the third quarter, the company expects EPS in a range of 9 cents and 13 cents. Analysts had projected 10 cents. Management expects revenue of between $155 million and $165 million vs. analysts’ projections of $158 million.
Prior to the earnings release, American Outdoor Brands shares were down for the year but have now gained more than 7% for 2018.