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Gunmaker American Outdoor Brands plummets 20% after quarterly sales plunge

Gunmaker American Outdoor Brands plummets 20% after quarterly sales plunge

American Outdoor Brands shares tanked after the reported a large year-over-year sales decline and gave dismal guidance.

The gunmaker said its sales fell 32.6 percent year over year in its fiscal third quarter.

Formerly Smith & Wesson, the company said its results reflect a “continuation of challenging market conditions in the consumer market for firearms.”

The stock was halted at about 4 p.m. ET prior to the announcement. It reopened 20 percent lower at 4:35 p.m. ET. Shares of American Outdoor fell as much as 26 percent in after-hours trade.

The company also gave disappointing fourth-quarter guidance. American Outdoor said it expects adjusted earnings between 9 cents and 11 cents per share on revenue between $162 million and $166 million. Wall Street had previously projected fourth-quarter earnings of 38 cents on $205.6 million in revenue, according to Thomson Reuters consensus estimates.

This story is developing. Please check back for updates.

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