Post Earnings Coverage as Vista Outdoor Sales Jump 24% Boosted by Acquisitions

Upcoming AWS Coverage on Callaway Golf Post-Earnings Results

LONDON, UK / ACCESSWIRE / November 18, 2016 / Active Wall St. announces its post-earnings coverage on Vista Outdoor Inc. (NYSE: VSTO). The company reported its financial results for second quarter fiscal 2017 (Q2 FY17) on November 10, 2016. The designer, manufacturer, and marketer of consumer products for the outdoor sports and recreation products top- and bottom-line numbers outperformed market expectations. Additionally, the company reaffirmed its FY16 outlook. Register with us now for your free membership at: http://www.activewallst.com/register/.

One of Vista Outdoor’s competitors within the Sporting Goods space, Callaway Golf CO. (NYSE: ELY), announced ON November 03, 2016, its third quarter 2016 financial results. AWS will be initiating a research report on Callaway Golf in the coming days.

Today, AWS is promoting its earnings coverage on VSTO; touching on ELY. Get our free coverage by signing up to:

http://www.activewallst.com/registration-3/?symbol=VSTO

http://www.activewallst.com/registration-3/?symbol=ELY

Earnings Reviewed

For the three months ended on October 01st, 2016, Vista Outdoor achieved sales of $684 million, up 24% from the prior year’s quarter, beating analysts’ forecasts of $657.4 million. The increase in sales was attributed to $106 million of sales from acquisitions, as well as organic growth in its segments. Q2 FY17 gross profit was $185 million, up 24% compared to $150 million in the prior year’s quarter; including $32 million of gross profit from acquisitions as well as increased gross profit in its Shooting Sports’ segment. This increase was partially offset by a decline in the organic Outdoor Products’ segment. Vista Outdoor reported operating profit of $77 million in Q2 FY17, an increase of approximately 9% from the prior year’s quarter.

For Q2 FY17, the company recorded net income of $44 million, up 12% from $40 million in Q2 FY16, resulting in EPS of $0.74 compared to $0.63 in the prior year’s quarter. The results topped Wall Street’s expectations for earnings of $0.61 per share.

Segment Results

During Q2 FY17, Vista Outdoor’s sales from the Outdoor Products segments surged 51% to $321 million from $213 million in the prior year’s quarter, including approximately $106 million of sales from acquisitions. Organically, the segment was up approximately 1% from the prior year’s quarter. Gross profit in Q2 FY17 for Outdoor Products was $84 million, an increase of 45% from $58 million in the year ago comparable quarter. The increase includes $32 million of gross profit from recent acquisitions.

For the Shooting Sports segment, Q2 FY17 sales grew 7% to $364 million from $338 million in Q2 FY16. The increase was due to strong sales performance across both the company’s ammunition and firearm portfolios, including acceleration in some international sales to allied countries. Shooting Sports segment’s gross profit was $102 million in the reported quarter, up 11% from $92 million in the prior year’s quarter; the increase was driven by volume and product mix.

Financials

Vista Outdoor’s year-to-date free cash flow use was $48 million compared to free cash flow generation of $5 million in the prior year’s period, the decline in free cash flow was driven by an increase in working capital due to the timing of collection and payments, and the increased capital expenditures largely due to the company’s previously announced ammunition capacity expansion project.

The Company repurchased approximately 1.74 million shares for $44 million in Q2 FY17. Since the end of Q2 FY17, it has repurchased an additional 724,000 shares for $28 million.

Outlook

For FY17, Vista is forecasting sales in the range of $2.72 billion to $2.78 billion, interest expense of approximately $45 million, an annual tax rate of approximately 37%. The company anticipated adjusted EPS in the range of $2.65 to $2.85, capital expenditures of approximately $90 million, and free cash flow in a range of $130 million to $160 million.

Stock Performance

On Thursday, November 17, 2016, Vista Outdoor’s shares climbed 3.18%, finishing the day at $39.60. A total volume of 766.50 thousand shares exchanged hands, which was higher than the 3 months average volume of 558.66 thousand shares. Shares of the company have a PE ratio of 17.31 and currently have a market cap of $2.37 billion.

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