Vista Outdoor Q4 Results Top Estimates; Sees Q1, FY23 Results Above Market; To Split Operations

(RTTNews) - Vista Outdoor Inc. (VSTO), a manufacturer of outdoor sports and recreation products, reported Thursday that its fourth-quarter climbed to net income $112.82 million or $1.93 per share from last year's $67.01 million or $1.11 per share.

Adjusted net income was $119.08 million, compared to prior year's $61.39 million. Adjusted earnings per share were $2.04, compared to $1.02 in the prior year.

On average, seven analysts polled by Thomson Reuters expected earnings of $1.80 per share for the quarter. Analysts' estimates typically exclude special items.

Sales reached $808.60 million, up 36 percent from last year's $596.52 million. Analysts estimated revenues of $760.87 million for the quarter.

The revenues were driven by strong demand across both Sporting Products and Outdoor Products segments as well as acquisitions, new product innovation and pricing.

Looking ahead for the first quarter, the company expects adjusted earnings per share between $1.85 and $1.95, and sales in a range of $770 million to $790 million, up 17.7 percent at the midpoint.

Analysts expect earnings of $1.77 per share on sales of $748.9 million for the quarter.

Further, for fiscal 2023, adjusted earnings per share are expected to be in a range of $7.00 to $7.75, with sales in a range of $3.15 billion to $3.25 billion, up 5 percent at the midpoint. Analysts expect earnings of $6.83 per share on sales of $3.09 billion for the year.

Separately, Vista Outdoor announced that its Board of Directors has unanimously approved a plan to separate its Outdoor Products and Sporting Products segments into two independent, publicly-traded companies.

The company expects to create these companies through a tax-free spin-off of its Outdoor Products segment to Vista Outdoor shareholders.

The transaction will be in the form of a distribution to its shareholders of 100% of the stock of Outdoor Products.

Vista Outdoor currently expects the transaction will be completed in calendar year 2023, subject to certain conditions.

Following the separation, the Outdoor Products segment will be a platform of outdoor brands including CamelBak, Bell, Giro, Camp Chef, Bushnell, Bushnell Golf, Foresight Sports, Stone Glacier and QuietKat.

As an independent company, Sporting Products will continue to focus on ammunition categories through its renowned brands including Federal, Remington, CCI, Speer, Estate Cartridge and HEVI-Shot.