Investors in American Outdoor Brands, Inc. (NASDAQ:AOUT) had a good week, as its shares rose 5.8% to close at US$9.00 following the release of its full-year results. The statutory results were mixed overall, with revenues of US$201m in line with analyst forecasts, but losses of US$0.94 per share, some 8.0% larger than the analyst was predicting. This is an important time for investors, as they can track a company's performance in its report, look at what expert is forecasting for next year, and see if there has been any change to expectations for the business. We thought readers would find it interesting to see the analyst latest (statutory) post-earnings forecasts for next year.

View our latest analysis for American Outdoor Brands

Taking into account the latest results, the current consensus from American Outdoor Brands' sole analyst is for revenues of US$205.7m in 2025. This would reflect a reasonable 2.3% increase on its revenue over the past 12 months. Losses are predicted to fall substantially, shrinking 24% to US$0.72. Before this earnings announcement, the analyst had been modelling revenues of US$205.8m and losses of US$0.49 per share in 2025. So it's pretty clear the analyst has mixed opinions on American Outdoor Brands even after this update; although they reconfirmed their revenue numbers, it came at the cost of a considerable increase to per-share losses.

As a result, there was no major change to the consensus price target of US$11.25, with the analyst 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. 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 2.3% annualised growth until the end of 2025. If achieved, this would be a much better result than the 1.2% annual decline over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenue grow 2.9% per year. Although American Outdoor Brands' revenues are expected to improve, it seems that the analyst is still bearish on the business, forecasting it to grow slower than the broader industry.

The Bottom Line

The most important thing to take away is that the analyst increased their loss per share estimates for next year. Fortunately, the analyst also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that American Outdoor Brands' revenue is expected to perform worse than the wider industry. The consensus price target held steady at US$11.25, with the latest estimates not enough to have an impact on their price target.

Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. At least one analyst has provided forecasts out to 2026, which can be seen for free on our platform here.

However, before you get too enthused, we've discovered 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.

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