Wrapping up Q1 earnings, we look at the numbers and key takeaways for the leisure products stocks, including Peloton (NASDAQ:PTON) 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. 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 7% on average since the previous earnings results.
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. 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 10.4% since reporting and currently trades at $3.57.
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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 very strong quarter for the company with an impressive beat of analysts' earnings estimates.
Although it had a great quarter compared its peers, the market seems unhappy with the results as the stock is down 15% since reporting. It currently trades at $13.95.
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 11.5% since the results and currently trades at $41.01.
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 $1.37 billion, down 21.7% year on year, in line with analysts' expectations. Looking more broadly, it was an ok quarter for the company with full-year revenue guidance beating analysts' expectations.
Brunswick scored the highest full-year guidance raise among its peers. The stock is down 16.8% since reporting and currently trades at $71.65.
Acushnet (NYSE:GOLF) Producer of the acclaimed Titleist Pro V1 golf ball, Acushnet (NYSE:GOLF) is a design and manufacturing company specializing in performance-driven golf products.
Acushnet reported revenues of $707.6 million, up 3.1% year on year, surpassing analysts' expectations by 2.7%. Looking more broadly, it was a decent quarter for the company with a narrow beat of analysts' earnings estimates.
The stock is down 5.5% since reporting and currently trades at $59.66.
This content was originally published on Stock Story
