COLUMBIA, Mo. - American Outdoor Brands (NASDAQ:AOUT), Inc. (NASDAQ Global Select: AOUT), a provider of outdoor products, has announced a new share repurchase program authorized by its Board of Directors. The company plans to buy back up to $10 million of its outstanding common stock starting October 1, 2024, and ending September 30, 2025.
This repurchase initiative follows a prior program that concluded on September 24, 2024, under which the company repurchased approximately 412,735 shares at an average price of $8.70 per share, totaling around $3.6 million.
Brian Murphy, President and CEO of American Outdoor Brands, expressed the board's confidence in the business and its dedication to enhancing stockholder value. He highlighted the company's strong financial position, noting that it operates debt-free and prioritizes effective capital allocation. Murphy affirmed the company's focus on growth through organic means and strategic mergers and acquisitions, while also committing to return capital to stockholders.
The repurchase of shares will be executed at management's discretion and may occur on the open market, in block trades, or through privately negotiated transactions. Factors influencing the repurchases include stock market price, trading volume, general market conditions, the company's capital structure, and legal requirements. However, there is no obligation for the company to acquire a specific number of shares, and the program may be halted at any time.
The press release contains forward-looking statements that are subject to risks and uncertainties, which could cause actual results to differ materially. These statements are based on current beliefs, expectations, and assumptions and include projections about financial outcomes and share repurchases.
American Outdoor Brands is known for its innovation and quality products catering to outdoor enthusiasts, with brands under its umbrella such as BOG®, BUBBA®, and Caldwell®. This news is based on a press release statement from the company.
In other recent news, American Outdoor Brands Inc. experienced a solid first fiscal quarter, marked by consistent demand in the Traditional sales channel, which helped balance some irregularities in the E-commerce segment. Roth/MKM has increased its price target for the company from $10.50 to $11.00 and continues to endorse a Buy rating. The company's robust gross margins and tight operational expense management led to an adjusted EBITDA surpassing both Roth/MKM's and consensus estimates. Furthermore, American Outdoor Brands management confirmed its financial outlook for fiscal year 2025, projecting up to a 2.5% year-over-year growth and an expansion in adjusted EBITDA margin by 5.8%.
On another note, Academy Sports and Outdoors, Inc. reported mixed results for the second quarter with earnings slightly exceeding expectations but revenue falling short. The company posted adjusted earnings per share of $2.03, edging past the analyst consensus of $2.02, while revenue decreased 2.2% year-over-year to $1.55 billion, missing estimates of $1.58 billion. In response to the revenue shortfall, Academy Sports revised its full-year revenue guidance to a range of $5.90-$6.08 billion, down from the previous outlook of $6.07-$6.35 billion. Despite these adjustments, the company continues with strategic initiatives, including the opening of new stores and enhancing its omnichannel capabilities.
InvestingPro Insights
As American Outdoor Brands, Inc. (NASDAQ: AOUT) embarks on its new share repurchase program, the company's financial metrics and market performance provide a backdrop for understanding its strategic decisions. With a market capitalization of $112.92 million and a price-to-book ratio of 0.65 as of the last twelve months leading up to Q1 2023, AOUT appears to be valued conservatively in terms of its assets. Despite not being profitable over the previous twelve months, analysts are optimistic about the company's future, predicting a return to profitability this year.
InvestingPro Tips highlight that American Outdoor Brands operates with a moderate level of debt, aligning with the CEO's statement about the company's strong financial position. Additionally, the company's liquid assets surpass its short-term obligations, indicating a solid liquidity status that may support its share repurchase program and other capital allocation strategies.
Investors should note that while the company does not pay dividends, its commitment to stock repurchases could be a method of returning value to shareholders. Moreover, two analysts have revised their earnings downwards for the upcoming period, which could be a point of consideration when evaluating the company's prospects.
For those interested in more detailed analysis and metrics, InvestingPro offers additional tips on American Outdoor Brands, providing a deeper dive into the company's financial health and market potential. The full suite of tips and real-time data can be found at InvestingPro.
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