As the Q1 earnings season comes to a close, it’s time to take stock of this quarter's best and worst performers in the leisure products industry, including Vista Outdoor (NYSE:VSTO) 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 mixed Q1; on average, revenues beat analyst consensus estimates by 4.3%. while next quarter's revenue guidance was 3.5% below consensus. Inflation progressed towards the Fed's 2% goal at the end of 2023, leading to strong stock market performance. The start of 2024 has been a bumpier ride, as the market switches between optimism and pessimism around rate cuts due to mixed inflation data, and leisure products stocks have held roughly steady amidst all this, with share prices up 4.4% on average since the previous earnings results.
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%. Overall, it was a weak quarter for the company with full-year revenue guidance missing analysts' expectations and a miss of analysts' earnings estimates.
“I am proud of the work our teams at Revelyst and The Kinetic Group have accomplished and our results demonstrate that the strategic direction of Vista Outdoor is the right one,” said Eric Nyman, Co-CEO of Vista Outdoor and CEO of Revelyst.
The stock is up 8.6% since reporting and currently trades at $38.71.
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Best Q1: 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, outperforming analysts' expectations by 28.4%. It was an impressive quarter for the company with a decent beat of analysts' earnings estimates.
Harley-Davidson achieved the biggest analyst estimates beat among its peers. Although it had a great quarter compared its peers, the market seems unhappy with the results as the stock is down 11.2% since reporting. It currently trades at $35.01.
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 with some shareholders hoping for a better result.
Ruger had the weakest performance against analyst estimates in the group. As expected, the stock is down 5.7% since the results and currently trades at $43.70.
Peloton (NASDAQ:PTON) Started as a Kickstarter campaign, Peloton (NASDAQ: PTON) is a fitness technology company known for its at-home exercise equipment and interactive online workout classes.
Peloton reported revenues of $717.7 million, down 4.2% year on year, in line with analysts' expectations. Taking a step back, it was a weak quarter for the company with a miss of analysts' earnings estimates and full-year revenue guidance missing analysts' expectations.
The stock is up 21.2% since reporting and currently trades at $3.92.
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 $203.4 million, down 45.8% year on year, falling short of analysts' expectations by 1.5%. Zooming out, it was a weak quarter for the company with a miss of analysts' earnings estimates.
Malibu Boats had the slowest revenue growth among its peers. The stock is up 14.2% since reporting and currently trades at $37.76.
This content was originally published on Stock Story
