Price movement of Vista Outdoor
Vista Outdoor (VSTO) has a market cap of $2.9 billion. It fell by 0.44% to close at $47.65 per share on May 6, 2016. The stock’s weekly, monthly, and year-to-date (or YTD) price movements were -0.69%, -2.8%, and 7.1%, respectively, on May 6. This means that VSTO is trading 1.7% below its 20-day moving average, 4.7% below its 50-day moving average, and 2.8% above its 200-day moving average.
Related ETFs and peers
The Guggenheim Spin-Off ETF (CSD) invests 4.6% of its holdings in Vista Outdoor. The ETF tracks an index of US-listed stocks spun off from corporate parents over the past 30 months. The index holds companies of all sizes.
The iShares Morningstar Small Core ETF (JKJ) invests 0.55% of its holdings in Vista Outdoor. The ETF tracks a market-cap-weighted index of US small-cap core stocks. The index selects stocks from 90%–97% of market caps that fall into Morningstar’s core style categorization. The YTD price movement of JKJ was 3.9% as of May 6, 2016.
The market caps of Vista Outdoor’s competitors are as follows:
- Sturm, Ruger & Co. (RGR) — $1.3 billion
- Smith & Wesson Holding Corporation (SWHC) — $1.2 billion
- Orbital ATK (OA) — $5.0 billion
Appointment of new senior vice president
Dave Allen has been appointed as Vista Outdoor’s senior vice president of sales. This change will be effective on May 9, 2016. He will report to chair and CEO Mark DeYoung.
Allen will be responsible for the company’s portfolio of domestic, international, law enforcement, and government sales. He recently served as the president of Coleman USA for the Jarden Corporation.
Performance of Vista Outdoor in fiscal 3Q16
Vista Outdoor reported fiscal 3Q16 net sales of $592.6 million, a rise of 16.9% compared to net sales of $506.9 million in fiscal 3Q15. Its net income and EPS (earnings per share) rose to $43.2 million and $0.70, respectively, in fiscal 3Q16, compared to -$11.2 million and -$0.17, respectively, in fiscal 3Q15.
VSTO’s cash and cash equivalents fell by 73.1%, and inventories rose by 28.4% in fiscal 3Q16 compared to fiscal 4Q15. Its current ratio fell to 3.1, and its debt-to-equity ratio rose to 0.79 in fiscal 3Q16 compared to a current ratio and a debt-to-equity ratio of 3.5 and 0.56, respectively, in fiscal 3Q15.
The company has made the following projections for fiscal 2016:
- sales in the range of $2.24 billion to $2.26 billion
- adjusted EPS in the range of $2.40 to $2.50
- capital expenditure of ~$45 million
- free cash flow in the range of $150 million to $170 million
- a tax rate of ~38%
Now we’ll take a look at Herbalife.