Photographer: Daniel Acker/Bloomberg
Gun Stocks Take a Hit After American Outdoor Sees Lower DemandBy
American Outdoor stock plummets 12 percent post-market
Weak forecast comes amid increased scrutiny of gun industry
American Outdoor Brands shares fell 12 percent post-market after the gun company’s full year earnings and revenue forecasts trailed the average of analyst estimates. Fellow gun stock, Sturm Ruger, fell 6 percent in sympathy.
“We believe that the new, lower levels of consumer firearm demand we saw reflected in the January NICS results may continue for some time,” American Outdoor Brands Chief Executive Officer, James Debney, said in a third quarter results statement. “Going forward, we will operate our business under the assumption that the next 12-18 months could deliver flattish revenues in Firearms.”
Gunmakers finally rallied today in the regular session as the prospect of stricter firearms controls led some investors to anticipate a short-term sales boost.
The Feb. 14 shooting in Parkland, Florida has put the firearms community in focus. Numerous companies have cut ties with the National Rifle Association including Symantec Corp., Hertz Global Holdings Inc., Avis Budget Group Inc. and MetLife Inc.
Other companies like Dick’s Sporting Goods Inc., Walmart Inc. and Kroger Co. said this week they would no longer sell assault rifles and would increase the minimum age to 21 to purchase firearms and ammunition in their stores.
Washington may look to forward initiatives as soon as next week, as Sens. Richard Blumenthal and Lindsey Graham plan to introduce a bipartisan bill that could help prevent people in crisis from accessing firearms, according to a joint statement.