Why Vista Outdoor Stock Got Taken to the Woodshed Today

Sheesh! And I thought it was bad when Vista Outdoor (NYSE: VSTO) missed earnings in February and lost 22.5% of its market cap. Somehow, today managed to be even worse.

Vista Outdoor reported fiscal second-quarter 2018 earnings this morning and, believe it or not, given investors' reaction, the numbers were better than expected. The company reported pro forma earnings of $0.34 per diluted share, $0.07 better than the $0.27 that Wall Street had expected. Sales likewise exceeded expectations, coming in at $587.3 million, slightly better than analysts' forecast of $583 million.

So why is Vista Outdoor stock down (29.2 % as of 3:30 p.m. EST and as much as 33% earlier in the day)? That's where our story begins.

Source: Fool.com