Gunmaker American Outdoor Brands plummets 20% after sales plunge

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An attendee tries out an M&P 15-22 Sport rifle at the Smith & Wesson booth at the 2016 National Shooting Sports Foundation’s Shooting, Hunting, Outdoor Trade (SHOT) Show at the Sands Expo and Convention Center on January 19, 2016 in Las Vegas, Nevada.

American Outdoor Brands shares tanked after the reported a large year-over-year sales decline and gave dismal guidance.

The gunmaker said its sales fell 32.6 percent year over year in its fiscal third quarter.

Formerly Smith & Wesson, the company said its results reflect a “continuation of challenging market conditions in the consumer market for firearms.”

The company also gave disappointing fourth-quarter guidance. American Outdoor said it expects adjusted earnings between 9 cents and 11 cents per share on revenue between $162 million and $166 million. Wall Street had previously projected fourth-quarter earnings of 38 cents on $205.6 million in revenue, according to Thomson Reuters consensus estimates.

The stock was halted at about 4 p.m. ET prior to the announcement. It reopened 20 percent lower at 4:35 p.m. ET. Shares of American Outdoor fell as much as 26 percent in after-hours trade.

American Outdoor shares have shed more than 50 percent in the past 12 months. The stock set a new 52-week intraday low of $8.87 on Wednesday.

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