Outdoor (NASDAQ:POWW) Posts Earnings Results, Beats Estimates By $0.03 EPS

Outdoor (NASDAQ:POWW) announced its quarterly earnings data on Monday. The company reported $0.01 EPS for the quarter, topping analysts’ consensus estimates of ($0.02) by $0.03, FiscalAI reports. The company had revenue of $13.39 million for the quarter, compared to analyst estimates of $12.52 million.

Here are the key takeaways from Outdoor’s conference call:

• Q3 results showed meaningful operational improvement with net sales of $13.4M (+7%), net income of $1.47M versus a loss last year, and Adjusted EBITDA of $6.5M (up ~54%), while gross margin remained strong at ~87%.
• Operating expenses declined roughly $22M year‑over‑year (including a ~$1.4M reduction in recurring corporate OpEx), driving over $4M of cash from operations in the quarter.
• The balance sheet is strong with cash of ~$69.9M (up ~ $4.2M this quarter) and an active share repurchase program management intends to deploy when trading windows open.
• Management is investing in buyer experience initiatives—notably the Master FFL partnership and a universal payments project to reduce friction and potentially raise take rate, but these carry upfront costs (~$60K–$120K/month) and an uncertain timeline.
• Legal and litigation‑related expenses (including indemnification of former officers) remain unpredictable and could materially affect future cash flow and Adjusted EBITDA until outstanding matters are resolved.

Outdoor Stock Up 6.7%

Shares of POWW stock opened at $1.92 on Wednesday. Outdoor has a 12-month low of $1.08 and a 12-month high of $2.14. The company has a quick ratio of 3.44, a current ratio of 3.44 and a debt-to-equity ratio of 0.04. The firm has a fifty day moving average of $1.81 and a 200-day moving average of $1.61. The company has a market capitalization of $224.85 million, a price-to-earnings ratio of -9.60 and a beta of 1.26.

Outdoor declared that its board has authorized a stock buyback plan on Monday, January 5th that authorizes the company to repurchase $15.00 million in shares. This repurchase authorization authorizes the company to buy up to 7.7% of its stock through open market purchases. Stock repurchase plans are typically a sign that the company’s leadership believes its shares are undervalued.

Institutional Investors Weigh In On Outdoor

Several institutional investors have recently bought and sold shares of POWW. AQR Capital Management LLC bought a new stake in Outdoor during the 1st quarter worth about $29,000. Jacobs Levy Equity Management Inc. bought a new position in shares of Outdoor in the first quarter valued at $214,000. Empowered Funds LLC grew its position in shares of Outdoor by 7.4% in the 1st quarter. Empowered Funds LLC now owns 645,302 shares of the company’s stock valued at $891,000 after acquiring an additional 44,545 shares during the period. Jane Street Group LLC increased its position in Outdoor by 114.4% during the first quarter. Jane Street Group LLC now owns 148,855 shares of the company’s stock worth $205,000 after buying an additional 79,416 shares during the last quarter. Finally, Focus Partners Wealth increased its holdings in shares of Outdoor by 2.5% during the 1st quarter. Focus Partners Wealth now owns 545,742 shares of the company’s stock worth $753,000 after acquiring an additional 13,130 shares during the last quarter. Institutional investors own 26.40% of the company’s stock.

Analyst Ratings Changes

POWW has been the subject of several analyst reports. Weiss Ratings restated a “sell (d)” rating on shares of Outdoor in a research report on Monday, December 29th. Roth Mkm upped their target price on shares of Outdoor from $2.25 to $2.30 and gave the company a “buy” rating in a research note on Tuesday. Finally, Lake Street Capital boosted their price target on shares of Outdoor from $2.00 to $2.50 and gave the company a “buy” rating in a report on Tuesday, November 11th. Two equities research analysts have rated the stock with a Buy rating, one has given a Hold rating and one has given a Sell rating to the stock. According to data from MarketBeat, Outdoor presently has an average rating of “Hold” and an average price target of $2.40.

Outdoor Company Profile

AMMO, Inc designs, produces, and markets ammunition and ammunition component products for sport and recreational shooters, hunters, individuals seeking home or personal protection, manufacturers, and law enforcement and military agencies. The company's products include STREAK Visual Ammunition that enables shooters to see the path of the bullets fired by them; and Stelth Subsonic ammunition primarily for suppressed firearms. It also owns and operates GunBroker.com, an auction site that supports the lawful sale of firearms, ammunition, and hunting/shooting accessories.