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POWW Outdoor Holding News Story

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Firearms firm Outdoor Holding Q1 revenue beats estimates

Overview

Outdoor Holding fiscal Q1 rev of $11.9 mln beats analyst expectations, per LSEG data

Adjusted EPS for fiscal Q1 beats consensus

Co had completed ammunition division sale, and rebranded to focus on GunBroker.com

Outlook

Company expects legal expenses to decrease over next 12-18 months

Outdoor Holding aims for $25 mln Adjusted EBITDA run rate in 18 months

Company focuses on enhancing GunBroker.com platform for growth

Result Drivers

REVENUE DECLINE - Net revenues fell to $11.9 mln from $12.3 mln, attributed to macroeconomic softness impacting consumer discretionary categories, particularly firearms-related businesses

GROSS MARGIN IMPROVEMENT - Gross margin increased to 87.2% from 85.8% due to improved platform monetization and a higher mix of high-margin seller services

COST REDUCTION - Operating expenses decreased by $0.4 mln year-over-year as the company implemented cost reduction initiatives aligned with its transition to an asset-light, marketplace-only model

Key Details

MetricBeat/MissActualConsensus Estimate
Q1 RevenueBeat$11.90 mln$11.70 mln (2 Analysts)
Q1 Adjusted EPSBeat$0.02-$0.04 (2 Analysts)
Q1 Adjusted EBITDAMiss$3.10 mln$5.54 mln (1 Analyst)
Analyst Coverage The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 1 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell" The average consensus recommendation for the recreational products peer group is "buy" Wall Street's median 12-month price target for Outdoor Holding Company is $1.70, about 33.5% above its August 7 closing price of $1.13 Press Release: ID:nGNX5MHllk (This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)

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