American Outdoor Brands (AOUT) Plunges 13.13% Amid Guidance Suspension

American Outdoor Brands (AOUT) experienced a significant intraday decline of 13.13%, marking its lowest level since December 2024. Despite this, the stock price also reached its highest level since March 2025, with an intraday gain of 12.54%.

The strategy of buying AOUT shares after they reached a recent peak and holding for 1 week showed poor performance over the past 5 years. The annualized return was -3.5%, significantly underperforming the market. This indicates that waiting for dips in the stock price after peaks often leads to subpar returns, especially in the case of AOUT.

American Outdoor Brands (AOUT) recently suspended its fiscal year 2026 revenue guidance due to macroeconomic uncertainties, which has sparked debate among investors. This move has added to the volatility in the stock's performance, as investors grapple with the potential impact on future earnings.

Despite the suspension of revenue guidance, American Outdoor Brands delivered strong fiscal Q4 2025 results. The company's performance was boosted by pull-forward orders, restocking, and standout new products, which helped to drive earnings growth. The company reported an earnings surprise with EPS of $0.13, surpassing estimates and marking a 750% earnings surprise. This positive news has helped to offset some of the negative sentiment surrounding the suspension of revenue guidance.

Analysts have also weighed in on the stock's performance, with Roth Capital revising its price target for AOUT from $15.50 to $14, while maintaining a Buy rating. Lake Street Capital also decreased its price target for AOUT from $20.00 to $19.00. These revisions reflect the uncertainty surrounding the company's future performance, as well as the potential impact of macroeconomic factors on its operations.

During a conference call on June 26, 2025, American Outdoor Brands highlighted several risks that could impact its future operations. These risks include supply chain disruptions, consumer spending fluctuations, and competitive pressures. The company acknowledged that these factors could have a material impact on its financial performance, and urged investors to remain cautious in their outlook for the stock.