As the Q2 earnings season wraps, let’s dig into this quarter’s best and worst performers in the leisure products industry, including Brunswick (NYSE:BC) 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 Q2. As a group, revenues were in line with analysts’ consensus estimates while next quarter’s revenue guidance was 16.6% below.
Inflation progressed towards the Fed’s 2% goal at the end of 2023, leading to strong stock market performance. On the other hand, 2024 has been a bumpier ride as the market switches between optimism and pessimism around rate cuts and inflation. Thankfully, leisure products stocks have been resilient with share prices up 6.7% on average 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 $1.44 billion, down 15.2% year on year. This print fell short of analysts’ expectations by 6.9%. Overall, it was a disappointing quarter for the company with underwhelming earnings guidance for the next quarter.
The stock is up 9.1% since reporting and currently trades at $80.17.
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Best 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 firearms and firearm accessories.
American Outdoor Brands reported revenues of $41.64 million, down 4.1% year on year, outperforming analysts’ expectations by 1.4%. The business had a very strong quarter with an impressive beat of analysts’ earnings estimates.
Although it had a fine quarter compared its peers, the market seems unhappy with the results as the stock is down 7.1% since reporting. It currently trades at $8.53.
Weakest Q2: Polaris (TSX:PIF) (NYSE:PII) Founded in 1954, Polaris (NYSE:PII) designs and manufactures high-performance off-road vehicles, snowmobiles, and motorcycles.
Polaris reported revenues of $1.96 billion, down 12.3% year on year, falling short of analysts’ expectations by 9.8%. It was a disappointing quarter as it posted a miss of analysts’ earnings estimates.
Interestingly, the stock is up 2.2% since the results and currently trades at $83.88.
MasterCraft (NASDAQ:MCFT) Started by a waterskiing instructor, MasterCraft (NASDAQ:MCFT) specializes in designing, manufacturing, and selling sport boats.
MasterCraft reported revenues of $67.18 million, down 59.7% year on year. This result beat analysts’ expectations by 6.5%. Taking a step back, it was a disappointing quarter as revenue guidance for next quarter missed analysts’ expectations.
MasterCraft had the slowest revenue growth and weakest full-year guidance update among its peers. The stock is down 10.5% since reporting and currently trades at $17.77.
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 $1.62 billion, up 12% year on year. This number surpassed analysts’ expectations by 27.2%. It was a very strong quarter as it also put up a solid beat of analysts’ earnings estimates and a decent beat of analysts’ motorcycles sold estimates.
Harley-Davidson achieved the biggest analyst estimates beat among its peers. The stock is up 12.1% since reporting and currently trades at $37.96.
This content was originally published on Stock Story
