Quarterly earnings results are a good time to check in on a company’s progress, especially compared to its peers in the same sector. Today we are looking at Brunswick (NYSE:BC) and the best and worst performers in the leisure products industry.
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 14 leisure products stocks we track reported a slower Q3. As a group, revenues beat analysts’ consensus estimates by 0.6% while next quarter’s revenue guidance was 1.1% below.
Amidst this news, share prices of the companies have had a rough stretch. On average, they are down 5.7% since the latest earnings results.
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 $1.27 billion, down 20.1% year on year. This print fell short of analysts’ expectations by 1.3%. Overall, it was a softer quarter for the company with full-year EPS guidance missing analysts’ expectations.
Unsurprisingly, the stock is down 16.2% since reporting and currently trades at $64.50.
Read our full report on Brunswick here, it’s free.
Best Q3: 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 firearms and firearm accessories.
American Outdoor Brands reported revenues of $60.23 million, up 4% year on year, outperforming analysts’ expectations by 13.1%. The business had an incredible quarter with a solid beat of analysts’ EPS estimates and an impressive beat of analysts’ EBITDA estimates.
American Outdoor Brands pulled off the highest full-year guidance raise among its peers. The market seems happy with the results as the stock is up 37.4% since reporting. It currently trades at $14.98.
Is now the time to buy American Outdoor Brands? Access our full analysis of the earnings results here, it’s free.
Weakest Q3: Clarus (NASDAQ:CLAR)
Initially a financial services business, Clarus (NASDAQ:CLAR) designs, manufactures, and distributes outdoor equipment and lifestyle products.
Clarus reported revenues of $67.12 million, down 17.4% year on year, falling short of analysts’ expectations by 8.1%. It was a disappointing quarter as it posted full-year revenue guidance missing analysts’ expectations.
Clarus delivered the weakest full-year guidance update in the group. As expected, the stock is down 7.1% since the results and currently trades at $4.41.
Read our full analysis of Clarus’s results here.
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 $129.7 million, up 3.8% year on year. This print missed analysts’ expectations by 2.9%. Overall, it was a disappointing quarter as it also produced a significant miss of analysts’ EPS estimates.
The stock is down 28.2% since reporting and currently trades at $9.80.
Read our full, actionable report on Smith & Wesson here, it’s free.
Malibu Boats (NASDAQ:MBUU)
Founded in California in 1982, Malibu Boats (NASDAQ:MBUU) is a manufacturer of high-performance sports boats and luxury watercrafts.
Malibu Boats reported revenues of $171.6 million, down 32.9% year on year. This number topped analysts’ expectations by 2.6%. Overall, it was a stunning quarter as it also logged a solid beat of analysts’ EPS estimates and an impressive beat of analysts’ EBITDA estimates.
Malibu Boats had the slowest revenue growth among its peers. The stock is down 12.6% since reporting and currently trades at $36.91.
Read our full, actionable report on Malibu Boats here, it’s free.
Market Update
Thanks to the Fed's series of rate hikes in 2022 and 2023, inflation has cooled significantly from its post-pandemic highs, drawing closer to the 2% goal. This disinflation has occurred without severely impacting economic growth, suggesting the success of a soft landing. The stock market has thrived in 2024, spurred by recent rate cuts (0.5% in September and 0.25% each in November and December), and a notable surge followed Donald Trump's presidential election win in November, propelling indices to historic highs. Nonetheless, the outlook for 2025 remains clouded by the pace and magnitude of future rate cuts as well as potential changes in trade policy and corporate taxes once the Trump administration takes over. The path forward is marked by uncertainty.
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