As the Q3 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 Ruger (NYSE:RGR) 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 14 leisure products stocks we track reported a slower Q3. As a group, revenues beat analysts’ consensus estimates by 0.6% while next quarter’s revenue guidance was 1.1% below.
While some leisure products stocks have fared somewhat better than others, they have collectively declined. On average, share prices are down 3.5% since the latest earnings results.
Ruger (NYSE:RGR)
Founded in 1949, Ruger (NYSE:RGR) is an American manufacturer of firearms for the commercial sporting market.
Ruger reported revenues of $122.3 million, up 1.2% year on year. This print fell short of analysts’ expectations by 10.8%. Overall, it was a disappointing quarter for the company with a significant miss of analysts’ EBITDA and EPS estimates.
Ruger delivered the weakest performance against analyst estimates of the whole group. Unsurprisingly, the stock is down 12.4% since reporting and currently trades at $35.71.
Read our full report on Ruger here, it’s free.
Best Q3: 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 firearms and firearm accessories.
American Outdoor Brands reported revenues of $60.23 million, up 4% year on year, outperforming analysts’ expectations by 13.1%. The business had an incredible quarter with an impressive beat of analysts’ EPS estimates and a solid beat of analysts’ EBITDA estimates.
American Outdoor Brands achieved the highest full-year guidance raise among its peers. The market seems happy with the results as the stock is up 55.7% since reporting. It currently trades at $16.97.
Is now the time to buy American Outdoor Brands? Access our full analysis of the earnings results here, it’s free.
Johnson Outdoors (NASDAQ:JOUT)
Operating in locations worldwide, Johnson Outdoors (NASDAQ:JOUT) specializes in innovative outdoor recreational products for adventurers worldwide.
Johnson Outdoors reported revenues of $105.9 million, up 9.9% year on year, falling short of analysts’ expectations by 7.9%. It was a disappointing quarter as it posted a significant miss of analysts’ EPS estimates.
As expected, the stock is down 3.8% since the results and currently trades at $33.26.
Read our full analysis of Johnson Outdoors’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 $478.4 million, up 10.4% year on year. This number topped analysts’ expectations by 1.5%. Overall, it was a satisfactory quarter as it also logged a decent beat of analysts’ EPS estimates.
YETI scored the fastest revenue growth among its peers. The stock is up 5.1% since reporting and currently trades at $38.
Read our full, actionable report on YETI here, it’s free.
MasterCraft (NASDAQ:MCFT)
Started by a waterskiing instructor, MasterCraft (NASDAQ:MCFT) specializes in designing, manufacturing, and selling sport boats.
MasterCraft reported revenues of $65.36 million, down 30.7% year on year. This print beat analysts’ expectations by 6.7%. It was a strong quarter as it also recorded a solid beat of analysts’ EPS estimates and an impressive beat of analysts’ EBITDA estimates.
The stock is up 8.6% since reporting and currently trades at $19.15.
Read our full, actionable report on MasterCraft here, it’s free.
Market Update
Thanks to the Fed's series of rate hikes in 2022 and 2023, inflation has cooled significantly from its post-pandemic highs, drawing closer to the 2% goal. This disinflation has occurred without severely impacting economic growth, suggesting the success of a soft landing. The stock market thrived in 2024, spurred by recent rate cuts (0.5% in September and 0.25% each in November and December), and a notable surge followed Donald Trump's presidential election win in November, propelling indices to historic highs. Nonetheless, the outlook for 2025 remains clouded by the pace and magnitude of future rate cuts as well as potential changes in trade policy and corporate taxes once the Trump administration takes over. The path forward is marked by uncertainty.
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