The end of an earnings season can be a great time to discover new stocks and assess how companies are handling the current business environment. Let’s take a look at how American Outdoor Brands (NASDAQ:AOUT) and the rest of the leisure products stocks fared in Q1.
Leisure products cover a wide range of goods in the consumer discretionary sector. Maintaining a strong brand is key to success, and those who differentiate themselves will enjoy customer loyalty and pricing power while those who don’t may find themselves in precarious positions due to the non-essential nature of their offerings.
The 12 leisure products stocks we track reported a mixed Q1. As a group, revenues beat analysts’ consensus estimates by 2.7% while next quarter’s revenue guidance was 5.1% below.
Thankfully, share prices of the companies have been resilient as they are up 7.6% on average since the latest earnings results.
Best Q1: American Outdoor Brands (NASDAQ:AOUT)
Spun off from Smith and Wesson in 2020, American Outdoor Brands (NASDAQ:AOUT) is an outdoor and recreational products company that offers outdoor and shooting sports products but does not sell firearms themselves.
American Outdoor Brands reported revenues of $61.94 million, up 33.8% year on year. This print exceeded analysts’ expectations by 27.8%. Overall, it was an incredible quarter for the company with an impressive beat of analysts’ EPS estimates and a solid beat of analysts’ EBITDA estimates.
American Outdoor Brands achieved the biggest analyst estimates beat and fastest revenue growth of the whole group. Investor expectations, however, were likely higher than Wall Street’s published projections, leaving some wishing for even better results (analysts’ consensus estimates are those published by big banks and advisory firms, not the investors who make buy and sell decisions). The stock is down 23.7% since reporting and currently trades at $9.20.
Is now the time to buy American Outdoor Brands? Access our full analysis of the earnings results here, it’s free.
Harley-Davidson (NYSE:HOG)
Founded in 1903, Harley-Davidson (NYSE:HOG) is an American motorcycle manufacturer known for its heavyweight motorcycles designed for cruising on highways.
Harley-Davidson reported revenues of $1.33 billion, down 23.1% year on year, falling short of analysts’ expectations by 1.2%. However, the business still had a very strong quarter with a solid beat of analysts’ EPS estimates and an impressive beat of analysts’ adjusted operating income estimates.
The market seems happy with the results as the stock is up 7.2% since reporting. It currently trades at $24.
Is now the time to buy Harley-Davidson? Access our full analysis of the earnings results here, it’s free.
Weakest Q1: Ruger (NYSE:RGR)
Founded in 1949, Ruger (NYSE:RGR) is an American manufacturer of firearms for the commercial sporting market.
Ruger reported revenues of $135.7 million, flat year on year, falling short of analysts’ expectations by 8.3%. It was a disappointing quarter as it posted a significant miss of analysts’ EPS estimates and a miss of analysts’ EBITDA estimates.
Ruger delivered the weakest performance against analyst estimates in the group. As expected, the stock is down 13.5% since the results and currently trades at $35.16.
Read our full analysis of Ruger’s results here.
Acushnet (NYSE:GOLF)
Producer of the acclaimed Titleist Pro V1 golf ball, Acushnet (NYSE:GOLF) is a design and manufacturing company specializing in performance-driven golf products.
Acushnet reported revenues of $703.4 million, flat year on year. This number topped analysts’ expectations by 0.7%. More broadly, it was a mixed quarter as it also logged a decent beat of analysts’ EPS estimates but a miss of analysts’ Titleist Clubs revenue estimates.
The stock is up 19.1% since reporting and currently trades at $77.36.
Read our full, actionable report on Acushnet here, it’s free.
Brunswick (NYSE:BC)
Formerly known as Brunswick-Balke-Collender Company, Brunswick (NYSE: BC) is a designer and manufacturer of recreational marine products, including boats, engines, and marine parts.
Brunswick reported revenues of $1.22 billion, down 10.5% year on year. This result surpassed analysts’ expectations by 7.9%. Taking a step back, it was a mixed quarter as it also produced an impressive beat of analysts’ EPS estimates but full-year EPS guidance missing analysts’ expectations significantly.
The stock is up 29.9% since reporting and currently trades at $58.74.
Read our full, actionable report on Brunswick here, it’s free.
Market Update
As a result of the Fed’s rate hikes in 2022 and 2023, inflation has come down from frothy levels post-pandemic. The general rise in the price of goods and services is trending towards the Fed’s 2% goal as of late, which is good news. The higher rates that fought inflation also didn't slow economic activity enough to catalyze a recession. So far, soft landing. This, combined with recent rate cuts (half a percent in September 2024 and a quarter percent in November 2024) have led to strong stock market performance in 2024. The icing on the cake for 2024 returns was Donald Trump’s victory in the U.S. Presidential Election in early November, sending major indices to all-time highs in the week following the election. Still, debates around the health of the economy and the impact of potential tariffs and corporate tax cuts remain, leaving much uncertainty around 2025.
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