Vista Out of doors Shares Rise After Outcomes, Outlook Pushed by Surging Ammunition Demand and Out of doors Recreation Traits

0
61

From Maria Armental

Vista Outdoor Inc. stock rose 7% to $ 41.95 after a record quarter and bullish outlook despite challenges and supply chain bottlenecks.

CEO Chris Metz said a 2020 resurgence in outdoor recreation has continued this year as rising demand for ammunition has helped the company’s shooting sport.

“The demand on the ammunition market will last longer this cycle than previous increases in demand,” said Metz during a conference call. “The influx of over 10 million new gun owners into the shooting sport has fundamentally changed the demand dynamic.”

Mr Metz said the National Instant Criminal Background Check System (NICS) is no longer a good leading indicator of ammunition demand. Instead, Vista Outdoor will now focus on ammunition consumption, low retail and consumer inventory levels, and its own backlog. “Everything indicates that demand is very strong and will pass regardless of the NICS exams for the foreseeable future,” he said.

The demand only accelerated in the summer.

The U.S. largest commercial ammunition maker, which bought rival Remington out of bankruptcy, expects second-quarter earnings to rise to $ 1.70-1.80 per share on sales of $ 710-730 million , compared to $ 575 million last year.

That outlook, which slightly beats analysts’ consensus guidance, includes the recent acquisitions of QuietKat and Venor, as well as HEVI-Shot and Remington.

Vista Outdoor earnings for the quarter ended June 27th more than doubled year over year to $ 102.7 million, or $ 1.71 per share, while revenue increased more than a third to 662, Up $ 9 million, with ammunition accounting for approximately $ 364 million in sales, up 39% from a year earlier.

Write to Maria Armental at [email protected]

LEAVE A REPLY

Please enter your comment!
Please enter your name here