Wrapping up Q1 earnings, we look at the numbers and key takeaways for the leisure products stocks, including Polaris (TSX:PIF) (NYSE:PII) 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 held roughly steady amidst all this, with share prices up 0.6% on average since the previous earnings results.
Polaris (NYSE:PII) Founded in 1954, Polaris (NYSE:PII) designs and manufactures high-performance off-road vehicles, snowmobiles, and motorcycles.
Polaris reported revenues of $1.76 billion, down 19.9% year on year, in line with analysts' expectations. Overall, it was a weak quarter for the company with a miss of analysts' earnings estimates.
The stock is down 7.2% since reporting and currently trades at $81.83.
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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 delivered 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 posted 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.
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%. More broadly, it was a very strong quarter for the company with an impressive beat of analysts' earnings estimates.
The stock is down 4.3% since reporting and currently trades at $2.86.
YETI (NYSE:YETI) Founded by two brothers from Texas, YETI (NYSE:YETI) specializes in durable outdoor goods including coolers, drinkware, and other gear tailored to adventure enthusiasts.
YETI reported revenues of $341.4 million, up 12.7% year on year, surpassing analysts' expectations by 2.4%. Overall, it was a very strong quarter for the company with an impressive beat of analysts' earnings estimates and strong earnings guidance for the full year.
YETI scored the fastest revenue growth among its peers. The stock is up 14.1% since reporting and currently trades at $39.76.
This content was originally published on Stock Story
