Outdoor (NASDAQ:POWW) Releases Quarterly Earnings Results, Beats Expectations By $0.03 EPS

Outdoor (NASDAQ:POWW) posted its quarterly earnings data on Monday. The company reported $0.01 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of ($0.02) by $0.03, FiscalAI reports. The firm had revenue of $13.39 million for the quarter, compared to analysts’ expectations 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 Price Performance

Shares of NASDAQ:POWW opened at $1.80 on Tuesday. The company has a current ratio of 3.44, a quick ratio of 3.44 and a debt-to-equity ratio of 0.04. The firm’s 50 day moving average is $1.81 and its two-hundred day moving average is $1.60. The firm has a market capitalization of $210.80 million, a P/E ratio of -9.00 and a beta of 1.26. Outdoor has a 52 week low of $1.08 and a 52 week high of $2.14.

Institutional Trading of Outdoor

Several hedge funds have recently added to or reduced their stakes in the business. BNP Paribas Financial Markets boosted its position in Outdoor by 101.4% during the 3rd quarter. BNP Paribas Financial Markets now owns 18,437 shares of the company’s stock worth $27,000 after acquiring an additional 9,283 shares during the period. Squarepoint Ops LLC acquired a new stake in Outdoor in the third quarter worth about $27,000. AQR Capital Management LLC acquired a new stake in shares of Outdoor in the 1st quarter worth approximately $29,000. Millennium Management LLC bought a new position in shares of Outdoor in the third quarter valued at approximately $63,000. Finally, Raymond James Financial Inc. increased its stake in shares of Outdoor by 246.0% during the third quarter. Raymond James Financial Inc. now owns 69,587 shares of the company’s stock valued at $103,000 after acquiring an additional 49,477 shares during the period. Institutional investors own 26.40% of the company’s stock.

Outdoor announced that its board has authorized a share buyback program on Monday, January 5th that permits the company to repurchase $15.00 million in outstanding shares. This repurchase authorization permits the company to buy up to 7.7% of its shares through open market purchases. Shares repurchase programs are generally an indication that the company’s leadership believes its shares are undervalued.

Wall Street Analyst Weigh In

A number of equities research analysts have recently issued reports on POWW shares. Roth Mkm upgraded shares of Outdoor from a “neutral” rating to a “buy” rating and upped their target price for the company from $1.40 to $2.25 in a research note on Wednesday, November 12th. Weiss Ratings restated a “sell (d)” rating on shares of Outdoor in a research note on Monday, December 29th. Finally, Lake Street Capital lifted their target price on Outdoor from $2.00 to $2.50 and gave the stock a “buy” rating in a research report on Tuesday, November 11th. Two analysts have rated the stock with a Buy rating, one has given a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat.com, the company has a consensus rating of “Hold” and an average target price of $2.38.

About Outdoor

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.