The first-quarter results for American Outdoor Brands, Inc. (NASDAQ:AOUT) were released last week, making it a good time to revisit its performance. Revenues of US$42m arrived in line with expectations, although statutory losses per share were US$0.18, an impressive 44% smaller than what broker models predicted. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

View our latest analysis for American Outdoor Brands

After the latest results, the twin analysts covering American Outdoor Brands are now predicting revenues of US$204.1m in 2025. If met, this would reflect a modest 2.4% improvement in revenue compared to the last 12 months. Losses are supposed to decline, shrinking 15% from last year to US$0.69. Before this latest report, the consensus had been expecting revenues of US$205.8m and US$0.60 per share in losses. While this year's revenue estimates held steady, there was also a noticeable increase in loss per share expectations, suggesting the consensus has a bit of a mixed view on the stock.

The consensus price target held steady at US$11.00, seemingly implying that the higher forecast losses are not expected to have a long term impact on the company's valuation.

Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. One thing stands out from these estimates, which is that American Outdoor Brands is forecast to grow faster in the future than it has in the past, with revenues expected to display 3.2% annualised growth until the end of 2025. If achieved, this would be a much better result than the 14% annual decline 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. The consensus price target held steady at US$11.00, with the latest estimates not enough to have an impact on their price targets.