What happened 

Shares of Vista Outdoor Inc (NYSE:VSTO) jumped 13.7% in August, according to data provided by S&P Global Market Intelligence, after providing a look at earnings that showed a positive impact of recent asset sales. 

So what 

First-quarter fiscal 2019 revenue fell 7% to $529 million and earnings per share fell from a profit of $0.29 a year ago to a loss of $0.91 per share. On an adjusted basis, which pulls out one-time items, earnings were breakeven versus a profit of $0.24 per share a year ago. 

Guns on a wood table.

Image source: Getty Images.

Management also updated investors on their guidance for the full year, which now includes the impact of selling its eyewear brands. Sales are expected to be $2.10 billion to $2.16 billion and adjusted earnings are expected to be $0.15 to $0.35 per share. Revenue guidance is down from $2.01 billion to $2.27 billion, but adjusted earnings expectations have increased from the $0.10 previously expected to $0.30. 

Now what 

The gun business is still in a funk given a political environment that doesn't threaten the gun market. But the worst of the swoon appears to be over and cost-cutting measures that gun makers have put in place over the last few years appear to be helping. At Vista Outdoor, that includes selling an eyewear business that isn't core to operations going forward. Sometimes even a small increase in expectations for the year will send a stock soaring. 

Travis Hoium has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.