Vista Outdoor (VSTO) tumbles 15% on slashed outlook

Vista Outdoor (NYSE: VSTO) shares fell about 18% in premarket Monday trading after the seller of outdoor sports and recreation products cut its full-year forecast and announced that it sold its Sporting Products business to Czechoslovak Group for approximately $1.91 billion in cash.

This move is part of Vista Outdoor's plan to split the company into separate entities. The deal is supported by $1.11 billion in debt financing and is expected to close in the calendar year 2024.

“This is an important strategic step for our company in creating value through separating our Outdoor Products and Sporting Products segments,” said Gary McArthur, interim CEO of Vista Outdoor.

“The previously announced plan to separate our businesses has positioned us to execute seamlessly on this transaction, which we believe is the best path to maximize value for our stockholders, while better positioning Sporting Products and Outdoor Products for future success.”

However, Vista Outdoor also reduced its sales guidance for the full year, and the guidance fell short of the average analyst estimate.

Vista shares fell about 15% in early New York trade on Monday.

FY sales are expected to be in the range of $2.73 billion to $2.83 billion, trailing the consensus of $2.87 billion. Adjusted EPS is expected between $3.65 and $4.05, a wide miss relative to the $4.69 consensus.

The company also announced preliminary second-quarter results. For its Sporting Products unit, Vista expects to report sales of $347-352 million with an operating income in the range of $91-95 million.

For the Outdoor Products segment, sales are expected to decrease to a range of $325 million to $330 million with an operating income of $11-15 million.

By Senad Karaahmetovic

You May Also Be Interested In

• GameStop posts higher income despite revenue drop in Q2 2026
• Can robotaxis push Uber to $119 target? BMO weighs in
• Palo Alto Networks (PANW) Tops Q4 EPS by 4c, Offers Guidance