Shares of Vista Outdoor surged following the release of its fiscal third-quarter results, as well as news about its intention to offload non-core assets. During afternoon trading, the stock rose by over 8% to reach $30.38. Over the past year, the company's shares have seen a modest increase of approximately 2%.
For the three-month period ending on December 24th, Vista Outdoor reported sales amounting to $682.3 million. This figure represents a 10% decline and falls short of analysts' expectations of $688.1 million.
Adjusted earnings per share came in at 80 cents, missing estimates by a penny.
Vista Outdoor is currently in the process of selling its ammo-manufacturing unit for a total of $1.91 billion. The deal has been progressing as planned after the company agreed to sell the business to Czechoslovak Group (CSG) in October.
Following the completion of this transaction, Vista Outdoor plans to separate the remaining portion of the company and operate it as an independent publicly traded entity under the name Revelyst. The brands encompassed within this unit include Camelbak, Giro helmets, Foresight Sports, Bushnell Golf, and more.
During a recent conference call, Eric Nyman, the CEO of Revelyst, stated that the company is conducting a comprehensive review of its brand portfolio and intends to divest its non-core assets. Preliminary discussions regarding potential deals are already taking place, with these assets receiving significant interest from potential buyers.