AXIL Brands Inc. (NYSE American: AXIL) surged 5.2% on Tuesday after reporting fourth-quarter results that exceeded earnings expectations, despite falling short on revenue.
The hearing protection and enhancement products company posted adjusted earnings per share of $0.18, beating the $0.14 consensus among analysts. Revenue totaled $8.6 million, below the $9.13 million estimate, but up 48.9% from $5.8 million in the same period a year earlier. Net income rose to $1.5 million, or $0.18 per diluted share, compared with a net loss of $0.2 million in the prior-year quarter.
Gross margin widened to 72% from 70%, driven by lower customs duties and refunds, partially offset by tighter margins from big-box retail sales. Adjusted EBITDA increased to $1.7 million, or 20.3% of revenue, up from $0.4 million, or 6.1% of revenue, in the year-ago period. Cash and equivalents stood at $4.5 million with no outstanding borrowings at quarter-end.
Chairman and CEO Jeff Toghraie attributed the results to execution of the company’s growth strategy, citing investments in distribution, product innovation and operational infrastructure. AXIL expanded its retail footprint to roughly 6,000 locations, including approximately 1,250 Walmart stores and about 70 Sportsman’s Warehouse locations, up from roughly 1,800 at the end of the prior fiscal year.
The company also noted receipt of approximately $910,000 in customs duty refunds after the quarter ended, which will be recorded in fiscal 2027.
