Leisure Products Q2 Earnings: Smith & Wesson (NASDAQ:SWBI) Simply the Best

As the craze of earnings season draws to a close, here’s a look back at some of the most exciting (and some less so) results from Q2. Today, we are looking at leisure products stocks, starting with Smith & Wesson (NASDAQ:SWBI).

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 Q2. As a group, revenues beat analysts’ consensus estimates by 3.5% while next quarter’s revenue guidance was 0.7% below.

In light of this news, share prices of the companies have held steady as they are up 3.6% on average since the latest earnings results.

Best Q2: Smith & Wesson (NASDAQ:SWBI)

With a history dating back to 1852, Smith & Wesson (NASDAQ:SWBI) is a firearms manufacturer known for its handguns and rifles.

Smith & Wesson reported revenues of $85.08 million, down 3.7% year on year. This print exceeded analysts’ expectations by 7.4%. Overall, it was an incredible quarter for the company with a beat of analysts’ EPS and EBITDA estimates.

The stock is up 14.8% since reporting and currently trades at $9.43.

Is now the time to buy Smith & Wesson? Access our full analysis of the earnings results here, it’s free.

Polaris (NYSE:PII)

Founded in 1954, Polaris (NYSE:PII) designs and manufactures high-performance off-road vehicles, snowmobiles, and motorcycles.

Polaris reported revenues of $1.88 billion, down 5.6% year on year, outperforming analysts’ expectations by 9.2%. The business had an exceptional quarter with a beat of analysts’ EPS and EBITDA estimates.

The market seems happy with the results as the stock is up 13.3% since reporting. It currently trades at $56.

Is now the time to buy Polaris? Access our full analysis of the earnings results here, it’s free.

Weakest Q2: 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 $29.7 million, down 28.7% year on year, falling short of analysts’ expectations by 17%. It was a disappointing quarter as it posted a significant miss of analysts’ EBITDA and EPS estimates.

American Outdoor Brands delivered the weakest performance against analyst estimates and slowest revenue growth in the group. As expected, the stock is down 16% since the results and currently trades at $8.73.

Read our full analysis of American Outdoor Brands’s results here.

MasterCraft (NASDAQ:MCFT)

Started by a waterskiing instructor, MasterCraft (NASDAQ:MCFT) specializes in designing, manufacturing, and selling sport boats.

MasterCraft reported revenues of $79.52 million, up 46.4% year on year. This number topped analysts’ expectations by 13.5%. Taking a step back, it was a mixed quarter as it also produced a beat of analysts’ EPS estimates but EBITDA guidance for next quarter missing analysts’ expectations.

MasterCraft achieved the fastest revenue growth but had the weakest full-year guidance update among its peers. The stock is up 4.5% since reporting and currently trades at $21.84.

Read our full, actionable report on MasterCraft here, it’s free.

Latham (NASDAQ:SWIM)

Started as a family business, Latham (NASDAQ:SWIM) is a global designer and manufacturer of in-ground residential swimming pools and related products.

Latham reported revenues of $172.6 million, up 7.8% year on year. This result came in 1.4% below analysts' expectations. Zooming out, it was a mixed quarter as it also recorded an impressive beat of analysts’ adjusted operating income estimates but EPS in line with analysts’ estimates.

The stock is up 12.4% since reporting and currently trades at $7.69.

Read our full, actionable report on Latham 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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