Vista Outdoor (NYSE: VSTO) reported Q2 EPS of $0.34, $0.07 better than the analyst estimate of $0.27. Revenue for the quarter came in at $587 million versus the consensus estimate of $589.98 million.

Outlook for Fiscal Year 2018

"During the quarter we recorded an impairment of intangible assets of $152 million in our Outdoor Products segment, with $75 million related to our Sports Protection business and $77 million related to our Hunting and Shooting Accessories business," said Nolan. "The impairment was triggered by increased downward pressure on sales and margins as a result of challenging market conditions that have persisted longer than previously expected. These challenging market conditions have been exacerbated by additional customer bankruptcies and consolidations. We continue to see high channel inventories for our Hunting and Shooting Accessories business. We expect these inventory levels will take the remainder of the fiscal year to work through, and will continue to put pressure on sales and margins. Our Sports Protection business has been impacted by the ongoing challenges facing the cycling industry broadly and by reduced retail space for our products.

"The market contraction and competitive environment I mentioned earlier will have more of an impact in the second half of the year than it did in the first half, including the full impact of the ammunition pricing action, which we took in the first and second quarters. While we have taken actions to reduce costs, these initiatives have been more than offset by persisting market conditions. As a result, we are revising our FY18 financial guidance for the year."

Vista Outdoor revised its FY18 financial guidance. The company expects:

• Sales in a range of $2.24 billion to $2.26 billion.
• An adjusted tax rate of approximately 25 percent.
• Adjusted EPS in a range of $0.50 to $0.60.
• Capital expenditures of approximately $65 million.
• Free cash flow in a range of $155 million to $175 million.
• Interest expense remains unchanged at approximately $50 million.

GUIDANCE:

Vista Outdoor sees FY2018 EPS of $0.50-$0.60, versus the consensus of $1.24. Vista Outdoor sees FY2018 revenue of $2.24-2.26 million, versus the consensus of $2.39 million.

For earnings history and earnings-related data on Vista Outdoor (VSTO) click here.