Looking back on leisure products stocks' Q1 earnings, we examine this quarter's best and worst performers, including Ruger (NYSE:RGR) and its peers.
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 16 leisure products stocks we track reported a slower Q1; on average, revenues beat analyst consensus estimates by 4.3%. while next quarter's revenue guidance was 3.5% below consensus. Stocks--especially those trading at higher multiples--had a strong end of 2023, but 2024 has seen periods of volatility. Mixed signals about inflation have led to uncertainty around rate cuts, and leisure products stocks have had a rough stretch, with share prices down 5.7% on average since the previous earnings results.
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 $136.8 million, down 8.5% year on year, falling short of analysts' expectations by 10.8%. It was a weak quarter for the company: Its revenue, operating margin, and EPS fell short of Wall Street's estimates.
Ruger delivered the weakest performance against analyst estimates of the whole group. The stock is down 10.2% since the results and currently trades at $41.6.
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Best Q1: 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 $159.1 million, up 9.9% year on year, outperforming analysts' expectations by 1.5%. It was a decent quarter for the company, with an impressive beat of analysts' earnings estimates.
The stock is down 13.2% since the results and currently trades at $14.25.
Vista Outdoor (NYSE:VSTO) Emerging from a 2015 spin-off, Vista Outdoor (NYSE:VSTO) specializes in the production and sale of outdoor gear and shooting sports equipment.
Vista Outdoor reported revenues of $693.7 million, down 6.4% year on year, falling short of analysts' expectations by 1.2%. It was a weak quarter for the company, with full-year revenue guidance missing analysts' expectations.
The stock is up 4.7% since the results and currently trades at $37.35.
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 $110.6 million, down 19.7% year on year, surpassing analysts' expectations by 8.8%. It was a very strong quarter for the company, with an impressive beat of analysts' earnings estimates.
The stock is down 0.7% since the results and currently trades at $2.97.
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 $1.73 billion, down 3.3% year on year, surpassing analysts' expectations by 28.4%. It was a very strong quarter for the company, with a decent beat of analysts' earnings estimates.
Harley-Davidson pulled off the biggest analyst estimates beat among its peers. The stock is down 17% since the results and currently trades at $32.74.
