Outdoor (NASDAQ:POWW) Posts Earnings Results

Outdoor (NASDAQ:POWW) posted its earnings results on Monday. The company reported $0.02 earnings per share (EPS) for the quarter, FiscalAI reports. Outdoor had a negative net margin of 6.92% and a positive return on equity of 1.89%. The company had revenue of $14.48 million during the quarter, compared to the consensus estimate of $13.02 million.

Here are the key takeaways from Outdoor’s conference call:

• Strong earnings turnaround: Q1 net revenue rose 22.1% to $14.5 million, adjusted EBITDA increased 152% to $7.9 million, and operating cash flow improved to $4.4 million from a $6.7 million outflow a year ago.
• Marketplace performance remained healthy, with GMV up 18.1% to $223.7 million, higher average order value and conversion, and firearm unit sales growing 11.6% versus a 5.3% increase in adjusted NICS. Excluding Virginia, GMV still increased approximately $23 million year over year.
• New monetization initiatives are gaining traction: FFL transfer services contributed $0.9 million of revenue and 39 basis points to the take rate in their first quarter, while management expects profitability and gross-margin contribution to improve as implementation costs subside.
• Operating expenses fell 45% year over year as legal, restructuring, and other legacy costs declined, while cash rose to $68.8 million despite $2 million of share repurchases, a preferred dividend, and debt repayment. The company has $12 million remaining under its repurchase authorization.
• Management cautioned against extrapolating Q1 results: Virginia-related legislation pulled demand forward, June momentum slowed, and summer is seasonally weaker. The company also noted that firearms demand can be affected by shifting legislation, litigation, and political developments.

Outdoor Stock Performance

Shares of POWW stock opened at $2.56 on Tuesday. Outdoor has a 12-month low of $1.13 and a 12-month high of $2.67. The company has a current ratio of 3.96, a quick ratio of 3.96 and a debt-to-equity ratio of 0.04. The stock has a 50 day simple moving average of $2.20 and a 200-day simple moving average of $2.06. The company has a market cap of $297.37 million, a price-to-earnings ratio of -51.20 and a beta of 1.02.

Analyst Ratings Changes

A number of research firms have commented on POWW. Zacks Research raised shares of Outdoor from a “hold” rating to a “strong-buy” rating in a research report on Wednesday, June 24th. Weiss Ratings lowered Outdoor from a “sell (d+)” rating to a “sell (d-)” rating in a research report on Tuesday, June 23rd. Finally, Roth Capital restated a “buy” rating on shares of Outdoor in a research note on Tuesday. One research analyst has rated the stock with a Strong Buy rating, two have assigned a Buy rating and one has issued a Sell rating to the company. According to MarketBeat.com, the stock presently has a consensus rating of “Moderate Buy” and an average price target of $2.62.

Institutional Inflows and Outflows

Institutional investors have recently modified their holdings of the stock. Kanen Wealth Management LLC lifted its holdings in Outdoor by 32.2% in the 3rd quarter. Kanen Wealth Management LLC now owns 11,494,006 shares of the company’s stock valued at $16,891,000 after purchasing an additional 2,802,006 shares in the last quarter. UBS Group AG lifted its stake in shares of Outdoor by 609.6% in the 3rd quarter. UBS Group AG now owns 532,702 shares of the company’s stock valued at $788,000 after purchasing an additional 457,636 shares in the last quarter. Jane Street Group LLC raised its stake in shares of Outdoor by 190.5% in the 2nd quarter. Jane Street Group LLC now owns 432,449 shares of the company’s stock valued at $554,000 after acquiring an additional 283,594 shares during the period. Vanguard Group Inc. boosted its position in shares of Outdoor by 3.4% in the third quarter. Vanguard Group Inc. now owns 5,358,634 shares of the company’s stock worth $7,931,000 after buying an additional 175,691 shares during the period. Finally, Jacobs Levy Equity Management Inc. purchased a new position in shares of Outdoor in the first quarter valued at $214,000. 26.40% of the stock is currently owned by institutional investors and hedge funds.

Outdoor Company Profile

AMMO, Inc designs, produces, and markets ammunition and ammunition component products for sport and recreational shooters, hunters, individuals seeking home or personal protection, manufacturers, and law enforcement and military agencies. The company's products include STREAK Visual Ammunition that enables shooters to see the path of the bullets fired by them; and Stelth Subsonic ammunition primarily for suppressed firearms. It also owns and operates GunBroker.com, an auction site that supports the lawful sale of firearms, ammunition, and hunting/shooting accessories.