The end of the earnings season is always a good time to take a step back and see who shined (and who not so much). Let’s take a look at how leisure products stocks fared in Q1, starting with Smith & Wesson (NASDAQ: SWBI).
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 11 leisure products stocks we track reported a mixed Q1. As a group, revenues were in line with analysts’ consensus estimates while next quarter’s revenue guidance was 5.1% below.
Thankfully, share prices of the companies have been resilient as they are up 7.3% on average since the latest earnings results.
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 $140.8 million, down 11.6% year on year. This print fell short of analysts’ expectations by 7.6%. Overall, it was a disappointing quarter for the company with a significant miss of analysts’ EPS estimates and a miss of analysts’ EBITDA estimates.
Unsurprisingly, the stock is down 20.9% since reporting and currently trades at $8.61.
Read our full report on Smith & Wesson here, it’s free.
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 $1.33 billion, down 23.1% year on year, falling short of analysts’ expectations by 1.2%. However, the business still had a very strong quarter with an impressive beat of analysts’ EPS estimates and a solid beat of analysts’ adjusted operating income estimates.
The market seems happy with the results as the stock is up 5.3% since reporting. It currently trades at $23.58.
Is now the time to buy Harley-Davidson? Access our full analysis of the earnings results here, it’s free.
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 $135.7 million, flat year on year, falling short of analysts’ expectations by 8.3%. It was a disappointing quarter as it posted a significant miss of analysts’ EPS estimates and a miss of analysts’ EBITDA estimates.
Ruger delivered the weakest performance against analyst estimates in the group. As expected, the stock is down 11.3% since the results and currently trades at $36.04.
Read our full analysis of Ruger’s results here.
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 $351.1 million, up 2.9% year on year. This number beat analysts’ expectations by 1.2%. More broadly, it was a mixed quarter as it also produced an impressive beat of analysts’ adjusted operating income estimates but full-year EPS guidance missing analysts’ expectations significantly.
The stock is up 10.5% since reporting and currently trades at $30.90.
Read our full, actionable report on YETI here, it’s free.
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 $1.22 billion, down 10.5% year on year. This result topped analysts’ expectations by 7.9%. Aside from that, it was a mixed quarter as it also logged a solid beat of analysts’ EPS estimates but full-year EPS guidance missing analysts’ expectations significantly.
Brunswick delivered the biggest analyst estimates beat among its peers. The stock is up 24.9% since reporting and currently trades at $56.49.
Read our full, actionable report on Brunswick here, it’s free.
Market Update
As a result of the Fed’s rate hikes in 2022 and 2023, inflation has come down from frothy levels post-pandemic. The general rise in the price of goods and services is trending towards the Fed’s 2% goal as of late, which is good news. The higher rates that fought inflation also didn't slow economic activity enough to catalyze a recession. So far, soft landing. This, combined with recent rate cuts (half a percent in September 2024 and a quarter percent in November 2024) have led to strong stock market performance in 2024. The icing on the cake for 2024 returns was Donald Trump’s victory in the U.S. Presidential Election in early November, sending major indices to all-time highs in the week following the election. Still, debates around the health of the economy and the impact of potential tariffs and corporate tax cuts remain, leaving much uncertainty around 2025.
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