AOUT

Image source: The Motley Fool. Thursday, Sept. 3, 2026 at 5 p.m. ET Vice President of Investor Relations - Liz Sharp President and Chief Executive Officer - Brian Murphy Chief Financial Officer - Andy Fulmer Operator: Good day, everyone, and welcome to American Outdoor Brands, Inc. First Quarter Fiscal 2027 Financial Results Conference Call. This call is being recorded. At this time, I would like to turn the call over to Liz Sharp, Vice President of Investor Relations, for some information about today's call. Elizabeth Sharp: Thank you, and good afternoon. Our comments today may contain predictions, estimates and other forward-looking statements. Our use of words like anticipate, project, estimate, expect, intend, should, could, indicate, suggest, believe and other similar expressions is intended to identify those forward-looking statements. Forward-looking statements also include statements regarding our product development, focus, objectives, strategies and vision, our strategic evolution, our market share and market demand for our products, market and inventory conditions related to our products and in our industry in general; and growth opportunities and trends. Our forward-looking statements represent our current judgment about the future, and they are subject to various risks and uncertainties. Risk factors and other considerations that could cause our actual results to be materially different are described in our securities filings. You can find those documents as well as a replay of this call on our website at aob.com. Today's call contains time-sensitive information that is accurate only as of this time, and we assume no obligation to update any forward-looking statements. Our actual results could differ materially from our statements today. A few important items to note about our comments on today's call. First, we reference certain non-GAAP financial measures. Our non-GAAP results exclude amortization of acquired intangible assets, stock compensation, contract exit costs, other costs and income tax adjustments. The reconciliation of GAAP financial measures to non-GAAP financial measures, where they are discussed on today's call, can be found in our filings as well as today's earnings press release, which are posted on our website. Joining us on today's call is Brian Murphy, President and CEO; and Andy Fulmer, CFO. And with that, I will turn the call over to Brian. Brian Murphy: Thank you, Liz. We are off to a strong start in fiscal 2027. We believe our first quarter results reflect the strength of our brands, healthy retailer and consumer demand for our products and the continued impact of our innovation strategy. We also believe the quarter reflects the impact of the strategic priorities and operating discipline we've built into our business over time. Our focus on innovation, disciplined execution and agility helped us deliver these strong results, and we believe those same capabilities will be important as we continue to execute against our growth objectives for the year. First quarter net sales were $37.3 million, an increase of 25% over the prior year quarter. As a reminder, we believe last year's first quarter was impacted by approximately $6 million of orders that retailers accelerated into the fourth quarter of fiscal 2025, creating a favorable comparison for the quarter we are reporting today. Even after adjusting for that acceleration, first quarter net sales increased approximately 4%, a great result that reflects the continued strength of our brands. Our growth in the quarter was driven by several factors and reflected higher sales with our largest retailers, including our largest e-commerce retailer and our largest mass retailer. We also benefited from higher direct-to-consumer sales through our own websites as well as strong sales to our international customers. Importantly, our first quarter performance was broad-based with double-digit growth in both our Outdoor Lifestyle and Shooting Sports categories. We also saw continued strength in POS during the quarter, telling us that consumer demand for our brands and products remained healthy. In fact, this is now our sixth consecutive quarter of positive year-over-year POS growth. POS increased 6% in Outdoor Lifestyle and 3% in our Shooting Sports category. Our key growth brands, BOG, BUBBA, Caldwell, Grilla and MEAT! Your Maker once again delivered positive year-over-year net sales growth on a combined basis. Our healthy POS results were supported by strong consumer pull-through of the new products we've introduced over the last 24 months. That pull-through drove strong retailer replenishment, resulting in new products contributing 36% of first quarter net sales, well above our historical average of 20% to 25%. Importantly, innovation drives not only revenue, but profitability by generating natural consumer demand without the need for promotions. But we all know that new products alone don't stand a chance without a compelling value proposition for the consumer. And this is where innovation differentiates AOB. We focus on product categories where innovation can disrupt the status quo and where our superior product can cause consumers to move away from incumbents. We're not just looking to take share. We strive to redefine what consumers expect from a category by reshaping the activity itself. Interestingly, there are a handful of innovation ingredients that many category-defining brands like Keurig, Ring, YETI and SharkNinja have in common with AOB's growth brand. The 4 ingredients that stand out to me are disruptive innovation, IP protection, product ecosystems and an element of product alchemy. And this last piece is critical. It means the difference between a consumer saying, "I bought this," or saying, "You have to try this." And our innovation strategy combines these ingredients to deepen consumer loyalty over time. Let's take Caldwell, for example. First, disruptive innovation. So a few years ago, we saw an opportunity to extend Caldwell into shotgun shooting, a category with meaningful consumer pain points and relatively low brand affinity. That led to 2 new platforms: Claymore, which address the mobility and power limitations of traditional clay throwers and ClayCopter, which reimagined target shooting with a highly portable launcher and biodegradable targets that better mimic bird flight. Second, IP protection. We now have more than 30 patents or pending patent applications supporting the Claymore and ClayCopter families of products. Third, product ecosystem. Using our Caldwell Clays mobile app, shooters can now connect Claymore and ClayCopter launchers to wirelessly launch both traditional clays and revolutionary ClayCopter targets in the same shooting session, an entirely new experience that no other brand can offer. And fourth, the element of product alchemy, which creates product evangelists. Our new Claymore and ClayCopter products are generating an incredible organic response from shooters all across the world on social media, forums and online reviews. A flurry of videos uploaded by consumers have each attracted millions of views and thousands of shares, but the numbers alone don't capture what is happening. What stands out is the spontaneous reaction from people, usually a wide grin and a genuine, "Wow, you have to try this." These are real consumers sharing the surprise, raw excitement and sheer fun these products have brought to recreational target shooting. Every one of those posts is an invitation for someone else to experience it. And that kind of consumer energy is powerful, and our retailers pay close attention to it. They see the excitement building and recognize the opportunity to bring that experience and that consumer into their stores. For us, that retailer engagement is especially valuable. It expands our brand's reach, creates new merchandising opportunities, makes it easier for more consumers to discover our platform and has the potential to compress adoption cycle. That dynamic has helped make Caldwell one of the top-performing brands in our portfolio today, and it reinforces our confidence in Caldwell's 5-year product pipeline, which is filled with exciting products that will continue to expand the platform and strengthen the brand. Caldwell is a good example of how we use these ingredients to create category-defining brands. But these ingredients can also combine in other areas as well to produce emerging new revenue streams for the company. BUBBA is a great example of that with subscription services that are now generating real revenue. When we launched the first BUBBA Smart Fish Scale and app 2 years ago, we included a complimentary 2-year subscription, a move intended to lower the barrier to entry and encourage consumers to adopt the new technology. That was especially important in fishing, where consumers often look to elite competitors to guide their product choices. One reason our relationship with Major League Fishing has been so valuable. Those complimentary subscriptions are now beginning to roll off. And while we remain in the early innings of tracking conversions, the trends are very encouraging. Paid subscriptions are now in the 6-figure dollar range on a TTM basis and accelerated in the first quarter, a solid indication that consumers see ongoing value in the connected experience. And with the consumer launch of SCORETRACKER LIVE at ICAST in July, we're now bringing that connected experience to a much broader audience, further expanding the long-term opportunity for the BUBBA ecosystem. As we look to the remainder of fiscal 2027, we like what we're seeing. Consumer demand for our products has remained healthy. Our key growth brands continue to perform well collectively, and our innovation pipeline is robust. That said, we also know from experience how quickly conditions can change. Consumer spending remains measured, tariffs continue to evolve and broader economic and global conditions remain dynamic. That makes it important that we continue to do what has served us well, stay close to our consumers and retail partners, remain focused on innovation, stay disciplined in our execution and maintain the agility to respond quickly and effectively as conditions evolve. We're pleased with our start to the year, confident in our strategy and focused on executing against the opportunities ahead. With that, I'll turn the call over to Andy to walk through our first quarter financial results and our outlook for fiscal 2027. H. Fulmer: Thanks, Brian. We're very pleased with our first quarter performance. We delivered strong net sales and profitability and ended the quarter with another strong balance sheet. Net sales for Q1 were $37.3 million compared to $29.7 million in Q1 last year, an increase of 25.4%. Brian outlined the acceleration of orders by our retailers that impacted Q1 of last year, so I won't go into that detail. Adjusting for that acceleration, net sales for Q1 increased by 4.3% compared to Q1 last year. On a category basis, net sales in Outdoor Lifestyle, which consists of products related to hunting, fishing, meat processing, outdoor cooking and rugged outdoor activities, increased 34.4%. Net sales in Shooting Sports, which includes solutions for target shooting, aiming, safe storage, cleaning and maintenance and personal protection increased 15.3% compared to Q1 last year. Turning to our distribution channels. Our traditional channel net sales increased 28.4% in the first quarter, and our e-commerce net sales increased 20.1% compared to last year. Domestic net sales during the quarter increased 24.9%, while our international net sales increased 32.7% or roughly $600,000 compared to Q1 last year, largely due to increased net sales in Canada and Europe. Turning to gross margin. Q1 gross margin was 53%, up 630 basis points compared with Q1 last year. This result reflected several factors, including higher margins from new products, channel mix, the timing of tariff capitalization and amortization and pricing actions taken in fiscal 2026. I'd like to provide a quick update on the evolving tariff landscape. Following the Supreme Court's February 2026 ruling that IEEPA-based tariffs were unlawfully imposed, the administration implemented tariffs under Section 122 at a 10% rate, subject to a statutory 150-day limit. On July 24, those tariffs were replaced by a new set of tariffs under Section 301 at rates of 10% or 12.5%, depending on the country of origin. As a reminder, these tariffs are in addition to the original 301 tariffs of either 7.5% or 25% that went into effect on certain products in 2018 as well as Section 232 tariffs of 25% or 50% that went into effect in 2025. Since February, we've been capitalizing these tariffs into inventory. Because the related costs are recognized in the P&L based on inventory turns, the impact to gross margin is delayed. As a result, we expect to begin seeing the impacts of these tariffs later in Q3 with the full quarterly impact reflected in Q4. Turning to operating expenses. GAAP operating expenses for the quarter were $21.9 million compared to $20.7 million last year. The increase was driven by higher variable costs due to the increase in net sales as well as higher fuel costs, partially offset by lower bad debt expense and lower intangible amortization. On a non-GAAP basis, operating expenses in Q1 were $19.8 million compared to $18.2 million in Q1 last year. Non-GAAP operating expenses exclude intangible amortization, stock compensation and certain nonrecurring expenses as they occur. GAAP EPS for Q1 was a loss of $0.12 compared to a loss of $0.54 last year. On a non-GAAP basis, EPS was $0.03 for the first quarter compared to a loss of $0.26 in Q1 last year. Our Q1 figures are based on our basic share count of approximately 12.6 million shares, whereas on a fully diluted basis, we expect our share count will be about 13.3 million shares for fiscal 2027 outside of any share buybacks that may occur. Adjusted EBITDA increased $4.3 million from a loss of $3.1 million in Q1 last year to positive $1.2 million in Q1 this year, driven mainly by the increase in net sales and gross margin. On a trailing 12-month basis, adjusted EBITDA was $14.5 million, up from $10.2 million at the end of fiscal 2026. Turning now to the balance sheet and cash flow. We continue to maintain a strong balance sheet, ending the quarter with $33.3 million in cash and no debt. We generated $13 million of operating cash in Q1 compared to an operating cash usage of $1.7 million in Q1 last year. The increase in cash was driven by IEEPA refund claims received in Q1 as well as improved operating performance. Inventory increased $8.4 million in Q1 to $100.3 million, in line with our expectations. The increase supports our seasonal inventory build as we prepare for hunting and holiday seasons. Our balance sheet remains strong and debt-free. We ended the quarter with no balance on our $75 million line of credit. So as of Q1, we have total available capital of over $120 million. Turning to capital expenditures. We spent roughly $500,000 on CapEx in Q1, mainly for product tooling and patent costs. For full year fiscal 2027, we expect to spend $3.5 million to $4 million, consistent with our asset-light operating model. Now turning to our outlook. Based on our Q1 performance and positive POS trends that Brian mentioned, we are maintaining our previous net sales guidance and raising our adjusted EBITDA guidance for fiscal 2027. We expect net sales for fiscal 2027 in the range of $200 million to $210 million, which at the midpoint would represent growth of 7.5% over fiscal 2026 reported net sales. For the second quarter, we expect net sales to increase approximately 3% compared with the prior year quarter. Over the course of the year, we continue to expect our typical seasonal net sales pattern to play out with Q2 and Q3 representing our highest quarters and Q4 exceeding Q1. Turning back to the full year. We expect gross margins for fiscal 2027 to be in the mid- to high 40s, slightly above our target range. Turning to OpEx. We continue to expect fiscal 2027 operating expenses to increase slightly due primarily to variable costs associated with higher net sales, partially offset by lower intangible asset amortization. On a percentage of net sales basis, we expect operating expenses to decline as we leverage our fixed cost base. We will continue to align our cost structure with our business activity while preserving the flexibility to respond to changing market conditions. Lastly, based on all the factors I've discussed, we are raising our adjusted EBITDA guidance for fiscal 2027. Our previous guidance called for adjusted EBITDA of roughly $13 million to $16 million. We now expect adjusted EBITDA in the range of $14.5 million to $17.5 million. The midpoint of $16 million would represent an increase of 57% from our prior year results. This new profitability guidance continues to be consistent with our long-term operating model, which targets an EBITDA contribution of 25% to 30% on net sales above $200 million. One reminder on income taxes. We ended fiscal 2026 with a net operating loss carryforward of approximately $21 million. Therefore, because of this benefit, we expect a minimal amount of GAAP income tax in fiscal 2027. With that, operator, please open the call for questions from our analysts. Operator: [Operator Instructions] The first question will come from Matt Koranda with ROTH Capital. Matt Koranda: I just want to make sure there was no IEEPA benefit that flowed through the P&L in the first quarter. Did you see any margin benefit that flowed through the P&L or all of the improvement was essentially the fundamental items that you highlighted, Andy? H. Fulmer: Yes. Matt, there was a little bit of IEEPA refund, a little bit left over from kind of some of the easier claims. So that was kind of baked into the reduced amount of tariffs for the quarter. But yes, we're really pleased with the 53%. Overall, what I talked about in the comments, roughly 200 basis points were related to that tariff timing. And the remainder is really from kind of growth in e-com and new products that we would expect higher margins on and then a little bit of pricing as well. Matt Koranda: Okay. Got it. So call it, 400 basis points from kind of product innovation mix shift that may be sustainable going forward? H. Fulmer: Correct. Product mix, channel mix, yes, and then a little bit of pricing. Matt Koranda: Okay. All right. Got you. Helpful. And then I guess maybe just level set us on the way to think about revenue growth for the remainder of the year. Obviously, embedded in the guide, it's sort of like a 4% kind of rate if we level set it across the rest of the quarters. I think you said second quarter, probably closer to 3%. But then you got POS and Outdoor Lifestyle growing what looks like mid-single digits and potentially, you still had this gap between sell-in and sell-through for the last several quarters. So that does bode well, I guess, for an acceleration for the rest of the year. How should we be thinking about that dynamic and sort of the health of channel inventory given that retailers have been destocking for several quarters now? Brian Murphy: Yes. Matt, this is Brian. So overall, we're actually pretty pleased with what we're seeing with channel inventory and the POS. So I would say it's more normalized replenishment at this point. So pretty tight link between the two. And you saw that, too, with our e-commerce customer commentary where we had expected they were getting a little low on inventory. We saw strong POS and would have expected that to reverse at some point, and we saw that trend beginning a few quarters ago, so in Q1 of this year. Certainly pleased with the direction it's headed, which is in line with our expectations. So to your point about the rest of the year, I mean, I think at this point, Q1, we're still early in the year. The majority of our sales occur in Q2 and Q3. The holiday season is a big barometer to understand what the health of the consumer looks like. Overall, though, I mean, new products for us is just hitting on all cylinders right now, especially with the growth brands. So I think we're being a little conservative as we look out over the rest of the year on that piece. But certainly, if things consider at this rate on the new products and the strong replenishment that we're seeing, there could be some upside to that. Matt Koranda: Okay. Understood. On the new product front, it was great to see that stat of 36% coming from new product. How sustainable do you think that high level is for the -- over the near to medium term, I guess, with the rollout of ClayCopter and some of the new innovation around Caldwell, I assume it may be sustainable for the next several quarters, but maybe just speak to sort of how you can hold sales at that kind of high rate of innovative product and new product. Brian Murphy: Yes. It certainly -- it's an extraordinary number. Our averages that we've cited historically are between 20% and 25%. I still think that's a good number long term. We seem to kind of hover around in that range. So 36% certainly stands out from that average. What's driving that 36%, we were just looking at before the meeting here, what were some of the top-performing products and you hit the nail on the head, the ClayCopter family is leading the charge there. And it's why we decided to really focus on that in the prepared remarks, just the reality of that product is unlike anything we've seen in some of our product launch history. So if you haven't seen any of that stuff, I encourage you to look it up. But -- so I think is it sustainable at that level? I don't think so. But I also think the ClayCopter in particular, continues to gain momentum. So it is possible that we see sort of higher-than-average sales from new products this year. But I don't know that we'll be able to sustain something closer to 36% for the remainder of the year. Matt Koranda: Okay. Fair enough. And for what it's worth taking the ClayCopter to the range before, and it definitely gets a lot of notice from folks. So yes, that's true on the ground. I guess last one for me. I just want to make sure I understand that sort of the gist behind the guidance raise on EBITDA, but not sales. It looks to me like it's stemming largely from the strength in gross margin that you put up in the first quarter here. But maybe just speak to the bigger kind of items that are driving the EBITDA revision to the upside versus kind of holding sales where it was. Brian Murphy: Yes, Matt, I can start. This is Brian. And then Andy, feel free to jump in. So I think it's a few things, right? We -- when we're looking at our net sales piece, in Q1, we have stronger e-com, which drives higher margins. We have higher new products, which drives higher margins. And I talked about the pricing piece, which was a smaller part of the overall increase. And I think if you look out at the rest of the year, if we continue to see strength in that e-com piece and new products, et cetera, I think it could help drive a revenue change. But kind of gross margins and what we can control below gross margins, we feel very good with. So when we look at the numbers, we feel confident in the top line range that we gave. And I already discussed some of the upside opportunities there. But when it comes to gross margin flowing through EBITDA contribution, what we can control internally, we feel really confident that we could increase our EBITDA range for the year. Operator: The next question will come from Mark Smith with Lake Street Capital. Mark Smith: First off, kind of a broad question. I'm curious as we look at first quarter results and what kind of drove bigger surprises versus your guidance and expectations. Curious if you can call out anything. It sounds like ClayCopter. Was there anything else to really call out that was surprising from either a revenue or a margin standpoint during the quarter? Brian Murphy: I mean I think it's -- we called out our largest e-com customer and our largest mass retailer that showed up in a big way in the quarter. And so we saw stronger replenishments from those 2 than I think we had originally modeled, which is great. And to your point around the ClayCopter, it's those types of new products that are really seeing the best highest success at POS right now. And retailers managing their inventory levels in a more normalized fashion. So those replenishments are coming through much more quickly, and they're having a better -- I think they're just better to able to forecast some of those new products now that they've been out for a little while. So I would point to those 2 customers, coupled with just the -- like you pointed out, the success of some of those new products that exceeded our expectations. Mark Smith: Okay. And then as we think about the consumer, I'm curious if there's any real trends that you've seen, results look really good. But as far as trade down or consumer behavior as you're looking at point-of-sale data, anything to really call out on where the consumer stands today? Brian Murphy: Yes. I mean we spent a lot of time talking about the consumer. We continue to orient our products towards the higher end as much as possible. So premium products that are disruptive. And so we look to capture the 2 types of consumers, the more affluent consumer or the super enthusiast who is willing to pay to have the highest quality, best-performing product. And so we continue to see traction there. I can give you a little bit of insight. We see some of the market data that's out there. And we are seeing for areas that we don't necessarily play in price points, kind of a continued downward pressure where the consumer is not spending as much. It seems like they really have to have a reason to go out and spend that discretionary share. At least at this point, we've been the beneficiary of that spend. But I would say certainly entry-level, mid-level price point products in our categories, I think, continue to be under a little bit more pressure. And I wouldn't say that's a category-specific thing. I think that's just sort of general outdoor retail right now. Mark Smith: Okay. And then last one for me, just looking broad-based kind of consumer. I'm curious if there's any update on Aiming Solutions, just given strong NICS background checks in your own Shooting Sports results, if there's anything to call out within Aiming Solutions on any improvement there or anything else in that Shooting Sports category outside of Caldwell that's surprised on the upside or downside? Brian Murphy: Yes. Yes. We've seen a nice lift. Some of our Shooting Sports brands tend to correlate more closely with NICS like Aiming Solutions. And we have mentioned in a few prior quarters that Aiming Solutions was one of our two headwinds. I would say at this point, that business is doing pretty well. So we had two sales events last year during the quarter that are onetime in nature. One was to an OEM customer. The other was to a military customer. And when you exclude those two onetime sales, the Crimson Trace was up and was consistent with what you saw in the NICS check. So the brand is performing well. It's -- we're seeing growth out of the brand overall. And I would say the rest of our Shooting Sports portfolio from gun cleaning, reloading continues to do well also. Operator: This concludes our question-and-answer session. I would like to turn the conference back over to Brian Murphy for any closing remarks. Brian Murphy: Thanks, operator. In closing, I want to thank our employees for their role in helping us deliver a strong start to fiscal 2027. And thank you, everyone, for joining us today, and we look forward to updating you next quarter. Operator: The conference has now concluded. Thank you for attending today's presentation. You may now disconnect. 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Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Adjusted net sales increased approximately 4%, reflecting strong replenishment from the company's largest e-commerce and mass retailers, alongside double-digit growth in both Outdoor Lifestyle and Shooting Sports. Innovation strategy significantly outperformed historical norms, with new products contributing 36% of net sales compared to the typical 20% to 25% range. Management attributes the success of the Caldwell brand to a four-pillar innovation framework: disruptive technology, intellectual property protection, integrated product ecosystems, and 'product alchemy' that drives organic social media evangelism. Gross margin expansion of 630 basis points was fueled by a favorable mix of high-margin new products, increased direct-to-consumer sales, and the strategic timing of tariff capitalization. The BUBBA brand is successfully transitioning to a recurring revenue model, with paid subscription services reaching the six-figure range on a trailing twelve-month basis as initial complimentary trials expire. Operational discipline and an asset-light model allowed the company to leverage fixed costs, resulting in a significant year-over-year swing to positive adjusted EBITDA. Management raised full-year adjusted EBITDA guidance to $14.5 million - $17.5 million, reflecting confidence in margin sustainability despite maintaining the existing revenue guidance range. The company expects to see the impact of new Section 301 tariffs (10% to 12.5%) begin to hit the P&L in late Q3, with the full quarterly impact realized in Q4 as inventory turns. Revenue seasonality is expected to follow historical patterns, with Q2 and Q3 serving as the highest volume quarters and Q4 projected to exceed Q1. Guidance assumes a 'measured' consumer spending environment, with management focusing on affluent and 'super enthusiast' consumers who are less sensitive to entry-level price point pressures. The company maintains a strong capital position with over $120 million in available liquidity and no debt, providing agility to respond to evolving global economic conditions. A Supreme Court ruling in February 2026 regarding IEEPA-based tariffs led to refund claims that contributed to a $13 million operating cash generation in the quarter. Inventory levels increased by $8.4 million to $100.3 million, a strategic build-up to support the upcoming hunting and holiday seasons. The company possesses a $21 million net operating loss carryforward, which is expected to result in minimal GAAP income tax obligations for the remainder of fiscal 2027. Management flagged evolving tariff landscapes, including Section 122 and Section 301 actions, as dynamic variables that require ongoing capitalization and pricing adjustments. Approximately 200 basis points of the margin improvement were related to tariff timing, while the remaining 400+ basis points were driven by sustainable factors like product mix, channel shift to e-commerce, and pricing actions. Management confirmed that while some IEEPA refunds were baked into the quarter, the underlying fundamental improvements remain the primary driver of profitability. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. Retailer destocking appears to have concluded, with management observing a 'tight link' and normalized replenishment patterns between POS and retailer orders. The company noted that their largest e-commerce customer had previously low inventory levels, which has now reversed into strong replenishment cycles. Management acknowledged the 36% figure is 'extraordinary' and likely to moderate toward the historical 20-25% average over the long term. However, the ClayCopter family continues to gain significant momentum, suggesting new product contributions may remain above average for the duration of the fiscal year. Management observed downward pressure on entry-level and mid-level price points across the broader outdoor retail market. The company is intentionally insulating itself by targeting premium, disruptive products for affluent consumers who require a specific 'reason' to spend discretionary income. Excluding one-time OEM and military sales from the prior year, the Crimson Trace brand showed growth consistent with positive NICS background check trends. The category has transitioned from a headwind in previous quarters to a stable performer alongside gun cleaning and reloading portfolios.

American Outdoor Brands, Inc. (AOUT) came out with quarterly earnings of $0.03 per share, beating the Zacks Consensus Estimate of a loss of $0.24 per share. This compares to a loss of $0.26 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +112.50%. A quarter ago, it was expected that this company would post a loss of $0.01 per share when it actually produced earnings of $0.13, delivering a surprise of +1400%. Over the last four quarters, the company has surpassed consensus EPS estimates three times. American Outdoor Brands, which belongs to the Zacks Leisure and Recreation Products industry, posted revenues of $37.25 million for the quarter ended July 2026, surpassing the Zacks Consensus Estimate by 4.54%. This compares to year-ago revenues of $29.7 million. The company has topped consensus revenue estimates three times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. American Outdoor Brands shares have added about 28.7% since the beginning of the year versus the S&P 500's gain of 12%. While American Outdoor Brands has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for American Outdoor Brands was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.39 on $59.65 million in revenues for the coming quarter and $0.58 on $205.05 million in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Leisure and Recreation Products is currently in the top 40% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. One other stock from the same industry, MasterCraft Boat Holdings, Inc. (MCFT), is yet to report results for the quarter ended June 2026. The results are expected to be released on September 10. This sport boats maker is expected to post quarterly earnings of $0.61 per share in its upcoming report, which represents a year-over-year change of +52.5%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. MasterCraft Boat Holdings, Inc.'s revenues are expected to be $119.25 million, up 50% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report American Outdoor Brands, Inc. (AOUT) : Free Stock Analysis Report MASTERCRAFT BOAT HOLDINGS, INC. (MCFT) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Interested in American Outdoor Brands, Inc.? Here are five stocks we like better. Strong first-quarter performance: Fiscal 2027 Q1 net sales rose 25.4% year over year to $37.3 million, while adjusted EBITDA improved to $4.3 million from a $3.1 million loss. Growth was broad-based across outdoor lifestyle, shooting sports, traditional retail, e-commerce and international markets. Innovation boosted demand and margins: New products accounted for 36% of sales, while gross margin expanded 630 basis points to 53%. Management highlighted Caldwell’s Claymore and ClayCopter platforms and growing subscription revenue from BUBBA smart products. Outlook strengthened despite tariff risks: The company maintained fiscal 2027 sales guidance of $200 million to $210 million but raised adjusted EBITDA guidance to $14.5 million-$17.5 million. Tariff-related costs are expected to begin affecting results later in the third quarter and more fully in the fourth quarter. 3 Solid Consumer Brands Offering Stability in Volatile Markets American Outdoor Brands (NASDAQ:AOUT) reported a strong start to fiscal 2027, with first-quarter net sales rising 25.4% year over year to $37.3 million and adjusted EBITDA improving to $4.3 million from a $3.1 million loss a year earlier. The company maintained its full-year sales outlook while raising its adjusted EBITDA guidance, citing higher-margin product and channel mix, new-product demand and operating discipline. President and CEO Brian Murphy said the quarter reflected healthy retailer and consumer demand, growth across both the outdoor lifestyle and shooting sports categories, and continued benefits from the company’s innovation strategy. → Boarding Call: EHang Secures First-Mover Altitude MarketBeat Week in Review – 7/3 - 7/7 “We are off to a strong start in fiscal 2027,” Murphy said. “Our focus on innovation, disciplined execution, and agility helped us deliver these strong results.” First-quarter sales increased from $29.7 million in the prior-year period. Management noted that the prior-year first quarter had been affected by approximately $6 million in retailer orders accelerated into the fourth quarter of fiscal 2025. After accounting for that comparison, American Outdoor Brands said sales increased approximately 4.3% from the prior-year quarter. Outdoor lifestyle sales rose 34.4% year over year. Shooting sports sales increased 15.3%. Traditional-channel sales grew 28.4%. E-commerce sales increased 20.1%. Domestic sales rose 24.9%, while international sales increased 32.7%, or about $600,000, driven largely by Canada and Europe. → Medtronic’s Stars Are Aligning for a Price Recovery What Does an Earnings Surprise Mean for American Outdoor Brands? Murphy said results included higher sales with the company’s largest e-commerce retailer and largest mass retailer, as well as increased direct-to-consumer website sales and international demand. He added that American Outdoor Brands recorded its sixth consecutive quarter of year-over-year point-of-sale growth, with POS up 6% in outdoor lifestyle and 3% in shooting sports. The company’s key growth brands—BOG, BUBBA, Caldwell, Grilla and MEAT! Your Maker—collectively posted year-over-year sales growth. New products represented 36% of first-quarter net sales, exceeding the company’s historical range of 20% to 25%. → Dutch Bros Sell-Off Creates a Growth Opportunity Murphy highlighted Caldwell’s Claymore and ClayCopter product platforms as examples of the company’s product-development approach. Caldwell expanded into shotgun shooting with Claymore, designed to address mobility and power limitations associated with traditional clay throwers, and ClayCopter, a portable launcher with biodegradable targets designed to mimic bird flight. American Outdoor Brands has more than 30 patents or pending patent applications supporting the Claymore and ClayCopter product families, Murphy said. Through the Caldwell Clays mobile app, consumers can connect the launchers and use traditional clays and ClayCopter targets in the same session. During the question-and-answer session, Murphy said the ClayCopter family was among the top contributors to new-product sales and had generated unusually strong consumer response. While he said the 36% contribution from new products is not expected to be sustainable over the long term, he indicated the company could see above-average new-product sales during the year. Murphy also pointed to BUBBA’s connected-product strategy. Paid subscriptions associated with BUBBA smart fish scales have reached the six-figure dollar range on a trailing-12-month basis and accelerated during the first quarter, according to the company. The subscriptions began converting from complimentary two-year offers included with the initial smart scale launch. American Outdoor Brands also launched SCORETRACKER LIVE for consumers at the ICAST trade show in July. First-quarter gross margin was 53%, up 630 basis points from the prior-year quarter. CFO Andy Fulmer attributed the expansion to higher margins from new products, channel mix, the timing of tariff capitalization and amortization, and pricing actions implemented in fiscal 2026. In response to an analyst question, Fulmer said roughly 200 basis points of the gross-margin improvement related to tariff timing, while the remaining improvement primarily reflected e-commerce growth, new-product mix and some pricing benefits. The company said it has capitalized tariffs into inventory since February, delaying recognition of related costs in its income statement. Fulmer said American Outdoor Brands expects tariff effects to begin appearing later in the third quarter, with a full-quarter impact in the fourth quarter. GAAP operating expenses rose to $21.9 million from $20.7 million, driven by sales-related variable costs and higher fuel costs, partly offset by lower bad-debt expense and intangible amortization. Non-GAAP operating expenses were $19.8 million, compared with $18.2 million a year earlier. The company reported a GAAP net loss of $0.12 per share, an improvement from a loss of $0.54 per share in the prior-year period. Non-GAAP earnings were $0.03 per share, compared with a non-GAAP loss of $0.26 per share a year earlier. American Outdoor Brands ended the quarter with $33.3 million in cash and no debt. Operating cash flow was $13 million, compared with cash usage of $1.7 million in the prior-year quarter, aided by IEEPA refund claims and improved operating performance. Inventory rose $8.4 million during the quarter to $100.3 million as the company built inventory for hunting and holiday demand. The company had no borrowings under its $75 million credit line and said it had more than $120 million in total available capital. For fiscal 2027, American Outdoor Brands maintained its sales forecast of $200 million to $210 million. At the midpoint, that would represent 7.5% growth from fiscal 2026 reported sales. The company expects second-quarter sales to increase approximately 3% from the prior-year period and said its typical seasonal pattern should continue, with the second and third quarters generating the highest sales. Fulmer said the company now expects adjusted EBITDA of $14.5 million to $17.5 million, raising its prior outlook of approximately $13 million to $16 million. The midpoint of the revised range, $16 million, would represent a 57% increase from the prior year, according to the company. Management said consumer spending remains measured and that tariffs, economic conditions and global developments remain fluid. Murphy said the company intends to remain focused on innovation, retailer relationships and operational flexibility as it progresses through the fiscal year. American Outdoor Brands, Inc designs, manufactures and distributes a broad range of outdoor sports and recreational products for consumers and commercial end users. Through its Shooting & Accessories and Functional Outdoor Approaches segments, the company offers shooting sports equipment, hunting and fishing accessories, archery gear, tactical and personal defense solutions, outdoor apparel, fitness products and knife and tool categories. Its portfolio encompasses well-known brands such as Wheeler®, Tipton®, Caldwell®, Hogue®, Manticore Arms® and other specialty labels. Formed as a standalone public company in 2016 following a spin-off from Smith & Wesson, American Outdoor Brands has its headquarters in Columbia, Missouri, with manufacturing, distribution and sales operations across North America. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "American Outdoor Brands Q1 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for September 2026.

COLUMBIA, Mo., Sept. 3, 2026 /PRNewswire/ -- American Outdoor Brands, Inc. (NASDAQ Global Select: AOUT), an innovation company that provides product solutions for outdoor enthusiasts, today announced financial results for the first quarter fiscal 2027 ended July 31, 2026. First Quarter Fiscal 2027 Financial Highlights Quarterly net sales were $37.3 million, an increase of $7.6 million, or 25.4%, compared with quarterly net sales of $29.7 million for the comparable quarter last year. Adjusted for approximately $6.0 million of orders that were accelerated by retailers from the first quarter of fiscal 2026 into the fourth quarter of fiscal 2025, net sales in the first quarter of fiscal 2027 increased by 4.3%. Quarterly gross margin was 53.0%, compared with quarterly gross margin of 46.7% for the comparable quarter last year. Quarterly GAAP net loss was $1.5 million, or $(0.12) per diluted share, compared with a GAAP net loss of $6.8 million, or $(0.54) per diluted share for the comparable quarter last year. Quarterly non-GAAP net income was $415,000, or $0.03 per diluted share, compared with non-GAAP net loss of $3.3 million, or $(0.26) per diluted share, for the comparable quarter last year. GAAP to non-GAAP adjustments for net income (loss) exclude acquired intangible amortization, stock compensation, and other costs. For a detailed reconciliation, see the schedules that follow in this release. Quarterly non-GAAP Adjusted EBITDA was $1.2 million, or 3.1% of net sales, compared with $(3.1) million, or (10.5)% of net sales for the comparable quarter last year. For a detailed reconciliation, see the schedules that follow in this release. Brian Murphy, President and Chief Executive Officer, said, "We are very pleased with our strong start to fiscal 2027. First quarter net sales increased approximately 25%. As a reminder, the prior-year quarter was impacted by approximately $6 million of orders that retailers accelerated into fiscal 2025. Even after adjusting for that acceleration, first quarter net sales increased approximately 4% – a great result that exceeded our expectations and reflects the continued strength of our brands. "Importantly, that performance was broad-based, reflecting growth in both our Outdoor Lifestyle and Shooting Sports categories, and supported by increased sales with our largest retail partners. Point-of-sale (POS) results also remained positive in both categories during the quarter, which we believe demonstrates healthy consumer demand across multiple brands in our portfolio. POS increased 6% in Outdoor Lifestyle and 3% in Shooting Sports. "Innovation remained a key driver of our first quarter performance, with new products representing more than 36% of our net sales. Our Caldwell ClayCopter platform continued to outperform during the quarter, generating strong retailer and consumer adoption, positive POS results, and significant engagement across social media. That success was further validated by the ClayCopter Surface-to-Air™ being named the 2026 Frank Desomma Innovation of the Year by the Industry Choice Awards in August. This recognition means a great deal to our team because the award is an unbiased evaluation of all products in the shooting sports industry – and Caldwell® came out on top. "We continued to expand our BUBBA® brand with new product introductions, including the launch of our Pro Series Gen 2 Electric Fillet Knife, which was recognized as Best of Show for the category of Cutlery, Hand Pliers, or Tools at ICAST 2026. A major milestone in the quarter was the consumer launch of SCORETRACKER® LIVE, our digital platform developed with Major League Fishing, that brings real-time scoring technology and the excitement of professional-grade competition to anglers, tournament organizers and fans everywhere. The launch expands BUBBA's opportunity within the large angling market while adding another important component to its growing ecosystem of connected hardware, software and subscription-based services. "More broadly, BUBBA® and Caldwell® demonstrate our strategy to build connected ecosystems around key growth brands that deepen consumer engagement and loyalty, extend the value of our innovation beyond individual products, and create multiple avenues for long-term growth. We believe this approach has the potential to extend to other brands in our portfolio over time." Andrew Fulmer, Chief Financial Officer, said, "Sales growth in the quarter translated to solid financial performance. Strength in new products helped accelerate margin expansion with gross margins increasing 630 basis points to 53.0% and Adjusted EBITDA improving more than $4.0 million. We also generated meaningful cash flow and ended the quarter with $33.3 million in cash and no debt, further strengthening our financial position." Fiscal 2027 Outlook"Our first quarter performance reinforces our confidence in our expectations for the year. We are maintaining our full-year guidance for net sales of $200 million to $210 million, and we are increasing our Adjusted EBITDA guidance to $14.5 million to $17.5 million. As we enter our seasonally stronger second and third quarters, we remain focused on delivering profitable growth while maintaining the financial flexibility to invest in our business and pursue opportunities that create long-term shareholder value." The Company does not provide a quantitative reconciliation of non-GAAP Adjusted EBITDA guidance in reliance on the "unreasonable efforts" exception for forward-looking non-GAAP measures set forth in SEC rules because certain financial information, the probable significance of which cannot be determined, is not available and cannot be reasonably estimated without unreasonable effort and expense. Conference Call and WebcastThe Company will host a conference call and webcast today, Thursday, September 3, 2026, to discuss its first quarter fiscal 2027 financial and operational results. Speakers on the conference call will include Brian Murphy, President and Chief Executive Officer, and Andrew Fulmer, Chief Financial Officer. The conference call may include forward-looking statements and a discussion of non-GAAP financial measures. The conference call and webcast will begin at 5:00 p.m. Eastern Time (2:00 p.m. Pacific Time). Those interested in listening to the conference call via telephone may call directly at (833) 630-1956 and ask to join the American Outdoor Brands call. No RSVP is necessary. The conference call audio webcast can also be accessed live on the Company's website at www.aob.com, under the Investor Relations section. Reconciliation of U.S. GAAP to Non-GAAP Financial MeasuresIn this press release, certain non-GAAP financial measures, including "non-GAAP net income (loss)," "Adjusted EBITDA," and net sales adjusted for $6.0 million of orders that were accelerated by retailers from fiscal 2026 into the final weeks of fiscal 2025 are presented. A reconciliation of "non-GAAP net income (loss)," "Adjusted EBITDA," and other non-GAAP financial measures is contained at the end of this press release. From time to time, the Company considers and uses these non-GAAP financial measures as supplemental measures of operating performance in order to provide the reader with an improved understanding of underlying performance trends. The Company believes it is useful for itself and the reader to review, as applicable, both (1) GAAP measures that include (i) amortization of acquired intangible assets, (ii) stock compensation, (iii) contract exit costs, (iv) income tax adjustments, (v) interest income, (vi) income tax expense, and (vii) depreciation and amortization; and (2) the non-GAAP measures that exclude such information. The Company presents these non-GAAP measures because it considers them an important supplemental measure of its performance and believes the disclosure of such measures provides useful information to investors regarding the Company's financial condition and results of operations. The Company's definition of these adjusted financial measures may differ from similarly named measures used by others. The Company believes these measures facilitate operating performance comparisons from period to period by eliminating potential differences caused by the existence and timing of certain expense items that would not otherwise be apparent on a GAAP basis. These non-GAAP measures have limitations as an analytical tool and should not be considered in isolation or as a substitute for the Company's GAAP measures. The principal limitations of these measures are that they do not reflect the Company's actual expenses and may thus have the effect of inflating its financial measures on a GAAP basis. About American Outdoor Brands, Inc.American Outdoor Brands, Inc. (NASDAQ Global Select: AOUT) is an innovation company that provides product solutions for outdoor enthusiasts, including hunting, fishing, camping, shooting, meat processing, outdoor cooking, and personal security and personal defense products. The Company produces innovative, high-quality products under brands including BOG®; BUBBA®; Caldwell®; Crimson Trace®; Frankford Arsenal®; Grilla®; Hooyman®; Imperial®; LaserLyte®; Lockdown®; MEAT! Your Maker®; Old Timer®; Schrade®; Tipton®; Uncle Henry®; and Wheeler®. For more information about all the brands and products from American Outdoor Brands, Inc., visit www.aob.com. Safe Harbor Statement Certain statements contained in this press release may be deemed to be forward-looking statements under federal securities laws, and we intend that such forward-looking statements be subject to the safe harbor created thereby. All statements other than statements of historical facts contained or incorporated herein by reference in this press release, including statements regarding our future operating results, future financial position, business strategy, objectives, goals, plans, prospects, markets, and plans and objectives for future operations, are forward-looking statements. In some cases, you can identify forward-looking statements by terms such as "anticipates," "believes," "estimates," "expects," "intends," "targets," "contemplates," "projects," "predicts," "may," "might," "plan," "would," "should," "could," "may," "can," "potential," "continue," "objective," or the negative of those terms, or similar expressions intended to identify forward-looking statements. However, not all forward-looking statements contain these identifying words. Specific forward-looking statements in this press release include our beliefs that our strategy to build connected ecosystems around key growth brands deepens consumer engagement and loyalty, extends the value of our innovation beyond individual products, and creates multiple avenues for long-term growth, and that approach has the potential to extend to other brands in our portfolio over time; and our estimates and predictions under "Fiscal 2027 Outlook." We caution that these statements are qualified by important risks, uncertainties, and other factors that could cause actual results to differ materially from those reflected by such forward-looking statements. Such factors include, among others, potential disruptions in our ability to source the materials necessary for the production of our products, disruptions and delays in the manufacture of our products, and difficulties encountered by retailers and other components of the distribution channel for our products; economic, social, political, legislative, and regulatory factors, such as the impact from changing economic policies, tariffs and supply chain constraints; the potential for product recalls, product liability, and other claims or lawsuits against us; inventory levels, both internally and in the distribution channel, in excess of demand; natural disasters, pandemics, seasonality, news events, political events, and consumer tastes; future investments for capital expenditures; our ability to introduce new products that are successful in the marketplace; interruptions of our arrangements with third-party contract manufacturers and freight carriers that disrupt our ability to fill our customers' orders; the features, quality, and performance of our products; the success of our strategies and marketing programs; lower levels of consumer spending in general and specific to our products or product categories; liquidity and anticipated cash needs and availability; increases in costs or decreases in availability of finished products, components, and raw materials; the uncertainty around tariff policies and potential recovery of tariffs paid that have been determined to be unlawful, and the potential for increased tariffs on our products, including additional tariffs that may be imposed by the current presidential administration; our ability to maintain or strengthen our brand recognition and reputation; risks associated with the distribution of our products and overall availability of labor; and other factors detailed from time to time in our reports filed with the Securities and Exchange Commission, including our Annual Report on Form 10-K for the fiscal year ended April 30, 2026. Contact: Liz Sharp, VP, Investor [email protected](573) 303-4620 View original content to download multimedia:https://www.prnewswire.com/news-releases/american-outdoor-brands-inc-reports-first-quarter-fiscal-2027-financial-results-302869322.html

Malibu Boats (MBUU) came out with quarterly earnings of $0.82 per share, beating the Zacks Consensus Estimate of $0.75 per share. This compares to earnings of $0.42 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +9.33%. A quarter ago, it was expected that this maker of performance sports boats would post earnings of $0.29 per share when it actually produced earnings of $0.56, delivering a surprise of +93.1%. Over the last four quarters, the company has surpassed consensus EPS estimates four times. Malibu Boats, which belongs to the Zacks Leisure and Recreation Products industry, posted revenues of $295.54 million for the quarter ended June 2026, surpassing the Zacks Consensus Estimate by 12.39%. This compares to year-ago revenues of $207.04 million. The company has topped consensus revenue estimates four times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Malibu Boats shares have lost about 5.6% since the beginning of the year versus the S&P 500's gain of 12.1%. While Malibu Boats has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for Malibu Boats was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.26 on $246.87 million in revenues for the coming quarter and $2.36 on $1.11 billion in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Leisure and Recreation Products is currently in the top 42% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. American Outdoor Brands, Inc. (AOUT), another stock in the same industry, has yet to report results for the quarter ended July 2026. The results are expected to be released on September 3. This company is expected to post quarterly loss of $0.24 per share in its upcoming report, which represents a year-over-year change of +7.7%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. American Outdoor Brands, Inc.'s revenues are expected to be $35.64 million, up 20% from the year-ago quarter. (We are reissuing this article to correct a mistake. The original article, issued on August 27, 2026, should no longer be relied upon.) Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Malibu Boats, Inc. (MBUU) : Free Stock Analysis Report American Outdoor Brands, Inc. (AOUT) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Malibu Boats (MBUU) came out with quarterly earnings of $0.92 per share, beating the Zacks Consensus Estimate of $0.75 per share. This compares to earnings of $0.42 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +22.67%. A quarter ago, it was expected that this maker of performance sports boats would post earnings of $0.29 per share when it actually produced earnings of $0.56, delivering a surprise of +93.1%. Over the last four quarters, the company has surpassed consensus EPS estimates four times. Malibu Boats, which belongs to the Zacks Leisure and Recreation Products industry, posted revenues of $295.54 million for the quarter ended June 2026, surpassing the Zacks Consensus Estimate by 12.39%. This compares to year-ago revenues of $207.04 million. The company has topped consensus revenue estimates four times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Malibu Boats shares have lost about 5.6% since the beginning of the year versus the S&P 500's gain of 12.1%. While Malibu Boats has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for Malibu Boats was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.26 on $246.87 million in revenues for the coming quarter and $2.36 on $1.11 billion in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Leisure and Recreation Products is currently in the top 42% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. American Outdoor Brands, Inc. (AOUT), another stock in the same industry, has yet to report results for the quarter ended July 2026. The results are expected to be released on September 3. This company is expected to post quarterly loss of $0.24 per share in its upcoming report, which represents a year-over-year change of +7.7%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. American Outdoor Brands, Inc.'s revenues are expected to be $35.64 million, up 20% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Malibu Boats, Inc. (MBUU) : Free Stock Analysis Report American Outdoor Brands, Inc. (AOUT) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research