Analysts Have Made A Financial Statement On American Outdoor Brands, Inc.'s (NASDAQ:AOUT) First-Quarter Report

As you might know, American Outdoor Brands, Inc. (NASDAQ:AOUT) recently reported its quarterly numbers. It looks like the results were pretty good overall. While revenues of US$42m were in line with analyst predictions, statutory losses were much smaller than expected, with American Outdoor Brands losing US$0.18 per share. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

See our latest analysis for American Outdoor Brands

Following the latest results, American Outdoor Brands' twin analysts are now forecasting revenues of US$204.1m in 2025. This would be an okay 2.4% improvement in revenue compared to the last 12 months. Losses are expected to be contained, narrowing 15% from last year to US$0.69. Yet prior to the latest earnings, the analysts had been forecasting revenues of US$205.8m and losses of US$0.60 per share in 2025. So it's pretty clear the analysts have mixed opinions on American Outdoor Brands even after this update; although they reconfirmed their revenue numbers, it came at the cost of a noticeable increase in per-share losses.

As a result, there was no major change to the consensus price target of US$11.00, with the analysts implicitly confirming that the business looks to be performing in line with expectations, despite higher forecast losses.

Of course, another way to look at these forecasts is to place them into context against the industry itself. For example, we noticed that American Outdoor Brands' rate of growth is expected to accelerate meaningfully, with revenues forecast to exhibit 3.2% growth to the end of 2025 on an annualised basis. That is well above its historical decline of 14% a year over the past three years. Compare this against analyst estimates for the broader industry, which suggest that (in aggregate) industry revenues are expected to grow 2.9% annually. So while American Outdoor Brands' revenues are expected to improve, it seems that it is expected to grow at about the same rate as the overall industry.

The Bottom Line

The most important thing to note is the forecast of increased losses next year, suggesting all may not be well at American Outdoor Brands. Happily, there were no real changes to revenue forecasts, with the business still expected to grow in line with the overall industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. At least one analyst has provided forecasts out to 2026, which can be seen for free on our platform here.

Don't forget that there may still be risks. For instance, we've identified 1 warning sign for American Outdoor Brands that you should be aware of.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.