Wrapping up Q2 earnings, we look at the numbers and key takeaways for the leisure products stocks, including American Outdoor Brands (NASDAQ: AOUT) 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 12 leisure products stocks we track reported a mixed Q2. As a group, revenues beat analysts’ consensus estimates by 3.5% while next quarter’s revenue guidance was 0.9% below.
In light of this news, share prices of the companies have held steady. On average, they are relatively unchanged since the latest earnings results.
Weakest 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 outdoor and shooting sports products but does not sell firearms themselves.
American Outdoor Brands reported revenues of $29.7 million, down 28.7% year on year. This print fell short of analysts’ expectations by 17%. Overall, it was a disappointing quarter for the company with a significant miss of analysts’ revenue and EBITDA estimates.
American Outdoor Brands delivered the weakest performance against analyst estimates and slowest revenue growth of the whole group. Unsurprisingly, the stock is down 27.8% since reporting and currently trades at $7.50.
Read our full report on American Outdoor Brands here, it’s free for active Edge members.
Best Q2: 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 $85.08 million, down 3.7% year on year, outperforming analysts’ expectations by 7.4%. The business had an incredible quarter with a beat of analysts’ EPS and EBITDA estimates.
The market seems happy with the results as the stock is up 19.3% since reporting. It currently trades at $9.80.
Is now the time to buy Smith & Wesson? Access our full analysis of the earnings results here, it’s free for active Edge members.
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 $1.31 billion, down 19.3% year on year, falling short of analysts’ expectations by 4.6%. It was a disappointing quarter as it posted and a significant miss of analysts’ revenue estimates.
Interestingly, the stock is up 13.5% since the results and currently trades at $26.06.
Read our full analysis of Harley-Davidson’s results here.
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 $207 million, up 30.4% year on year. This number topped analysts’ expectations by 5.4%. Zooming out, it was a slower quarter as it logged a significant miss of analysts’ EPS and adjusted operating income estimates.
The stock is down 27.5% since reporting and currently trades at $28.71.
Read our full, actionable report on Malibu Boats here, it’s free for active Edge members.
Ruger (NYSE: RGR)
Founded in 1949, Ruger (NYSE: RGR) is an American manufacturer of firearms for the commercial sporting market.
Ruger reported revenues of $132.5 million, up 1.3% year on year. This print beat analysts’ expectations by 12.4%. Zooming out, it was a mixed quarter as it also produced a solid beat of analysts’ revenue estimates but a significant miss of analysts’ EBITDA estimates.
The stock is up 30.2% since reporting and currently trades at $45.25.
Read our full, actionable report on Ruger here, it’s free for active Edge members.
Market Update
Thanks to the Fed’s rate hikes in 2022 and 2023, inflation has been on a steady path downward, easing back toward that 2% sweet spot. Fortunately (miraculously to some), all this tightening didn’t send the economy tumbling into a recession, so here we are, cautiously celebrating a soft landing. The cherry on top? Recent rate cuts (half a point in September 2024, a quarter in November) have propped up markets, especially after Trump’s November win lit a fire under major indices and sent them to all-time highs. However, there’s still plenty to ponder — tariffs, corporate tax cuts, and what 2025 might hold for the economy.
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