Price movement of Vista Outdoor
Vista Outdoor (VSTO) has a market cap of $2.9 billion. It rose by 0.44% to close at $47.56 per share on June 15, 2016. The stock’s weekly, monthly, and year-to-date (or YTD) price movements were -0.17%, -2.0%, and 6.9%, respectively, on the same day.
This means that VSTO is trading 2.1% below its 20-day moving average, 1.9% below its 50-day moving average, and 2.0% 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 YTD price movement of CSD was 2.1% on June 15, 2016.
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 cap that falls into Morningstar’s core style categorization.
The market caps of Vista Outdoor’s competitors are as follows:
- Sturm, Ruger & Co. (RGR) — $1.2 billion
- Smith & Wesson Holding Corporation (SWHC) — $1.2 billion
- Orbital ATK (OA) — $5.3 billion
Vista Outdoor’s rating
Roth Capital has initiated the coverage of Vista Outdoor with a “buy” rating and also set the stock price target at $55.00 per share.
Performance of Vista Outdoor in 4Q16 and 2016
Vista Outdoor (VSTO) reported fiscal 4Q16 net sales of $612.3 million, a rise of 26.1% as compared to net sales of $485.4 million in fiscal 4Q15. The company’s cost of sales as a percentage of net sales fell by 2.0%, and its EBIT (earnings before interest and tax) rose by 75.2% in fiscal 4Q16 as compared to the prior year period.
The company’s net income and EPS (earnings per share) rose to $37.3 million and $0.61, respectively, in fiscal 4Q16, as compared to $15.9 million and $0.25, respectively, in fiscal 4Q15. It reported adjusted EPS of $0.63 in fiscal 4Q16, a rise of 34% over fiscal 4Q15.
Fiscal 2016 results
In fiscal 2016, Vista Outdoor reported net sales of $2.3 billion, a rise of 9.0% YoY (year-over-year). Its net income and EPS rose to $147 million and $2.35, respectively, in fiscal 2016, compared to $79.5 million and $1.25, respectively, in fiscal 2015.
Vista Outdoor’s cash and cash equivalents fell by 42.5%, and its inventories rose by 17.2% in fiscal 2016. Its current ratio fell to 2.8x, and its debt-to-equity ratio rose to 0.77x in fiscal 2016, as compared to a current ratio and a debt-to-equity ratio of 3.3x and 0.52x, respectively, in fiscal 2015. It reported free cash flow of $163 million in fiscal 2016, a rise of 2.0% as compared to fiscal 2015.
Vista Outdoor (VSTO) has made the following projections for fiscal 2017:
- sales of ~$2.7 billion to ~$2.8 billion
- interest expense of ~$45 million
- tax rate of ~37%
- EPS of $2.65–$2.85
- capital expenditure of ~$90 million
- free cash flow of $130 million–$160 million
This guidance does not include any impact of future strategic acquisitions, divestitures, investments, business combinations, or other transactions.
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