Sportsman's Warehouse Soars After-Hours On Surprise Q4 Profit, Strong Outlook: Retail Eyes Scooping Up Battered Stock

Adjusted earnings came in at $0.04 per share against the expectation of a $0.06 per share loss. The company had an adjusted loss of $0.20 per share in the year-ago quarter.

Penny stock Sportsman's Warehouse (SPWH) rose 50% in after-hours trading on Tuesday, after the company reported better-than-expected quarterly results.

Net sales decreased 8.1% to $340.4 million in the fourth quarter ended Feb. 1. Analysts were expecting $328.67 million, according to Investing.com.

Adjusted earnings came in at $0.04 per share against the expectation of a $0.06 per share loss. The company had an adjusted loss of $0.20 per share in the year-ago quarter.

Sportsman's is a sports goods retailer selling items for hunting, shooting, archery, fishing, and camping, among other outdoor activities.

The company's sales have dropped 7% to 8% in each of the last three fiscal years, forcing it to report a net loss in the last two.

Shares of the company, which were listed in 2014, are down about 95% from their highs in late 2021 and currently trade around all-time lows.

For its current financial year, Sportsman's Warehouse forecasted net sales growth between -1% and +3.5%, and adjusted core earnings between $33 million and $45 million.

"To improve our profitability in 2025, we will continue to closely manage our variable expenses and expect modest improvements to our gross margins," CFO Jeff White said in a statement.

On Stocktwits, retail investors' sentiment jumped to 'extremely bullish' from 'neutral', and message volume to 'extremely high' from 'low' in a day.

One user noted the company's favorable financial metrics, including assets that are $200 million more than liabilities, and said, "Wall Street hasn't found this company yet".

Another user, however, was not convinced of the financial performance and said they would take a short position in the company.

As of Tuesday's close, SPWH shares are down 64% year to date.

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