Why American Outdoor Brands, Tellurian, and National Beverage Slumped Today
Friday was a good day for the stock market as a whole, as investors reacted favorably to the latest numbers on job creation. The Bureau of Labor Statistics said before the market opened that the U.S. economy added 228,000 jobs to its nonfarm payrolls during November, while relatively sanguine wage inflation suggested that the Federal Reserve might have room to slow the pace of future interest rate increases to fight off any chance of economic overheating. Hopes for successful tax reform also bolstered the markets, with major benchmarks climbing around half a percent. Yet some companies reported bad news that led them to miss the rally, and American Outdoor Brands (NASDAQ: AOBC), Tellurian (NASDAQ: TELL), and National Beverage (NASDAQ: FIZZ) were among the worst performers on the day. Below, we'll look more closely at these stocks to tell you why they did so poorly.
American Outdoor Brands stock finished down almost 10% after the company behind the Smith & Wesson brand of firearms reported its fiscal second-quarter financial results. The maker of guns and other outdoor lifestyle products suffered a 36% drop in revenue, with the firearms segment seeing even larger declines in order volume in both the wholesale and retail channels. Profit was down more than 80% from year-ago levels. American Outdoor's strategy of diversifying into non-firearm outdoor-oriented products paid off, as that segment showed solid gains. Yet the company predicted that it would lose money in the fiscal third quarter, and dramatically lower full-year guidance let investors know that the future could be tough for American Outdoor Brands.
Image source: Smith & Wesson.
Source: Fool.com