The end of an earnings season can be a great time to discover new stocks and assess how companies are handling the current business environment. Let’s take a look at how American Outdoor Brands (NASDAQ:AOUT) and the rest of the leisure products stocks fared in Q4.
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 weaker Q4; on average, revenues beat analyst consensus estimates by 0.7%, while next quarter's revenue guidance was 11.6% below consensus. Stocks, especially growth stocks where cash flows further in the future are more important to the story, had a good end of 2023. The beginning of 2024 saw mixed inflation data, however, leading to more volatile stock performance, and leisure products stocks have had a rough stretch, with share prices down 5% on average since the previous earnings results.
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 $53.43 million, up 5% year on year, topping analyst expectations by 4.4%. It was a weak quarter for the company, with a miss of analysts' earnings estimates.
Brian Murphy, President and Chief Executive Officer, said, "We delivered a solid quarter, and I am very pleased with our results, which included top line sales growth, disciplined capital management, and the unveiling of several strategically important product introductions that we believe expand our brands' runway for growth. I believe our results demonstrate our ability to remain focused on our long-term growth strategy, while successfully navigating the near-term environment. We delivered net sales growth of 5%, a result that came in ahead of our expectations and was supported by our diverse portfolio, evidenced by stronger sales across a number of brands within our Shooting Sports and Outdoor Lifestyle categories, which both delivered net sales growth. In addition, our e-Commerce and Traditional channels experienced net sales growth in the quarter."
The stock is up 1.3% since the results and currently trades at $8.63.
Read our full report on American Outdoor Brands here, it's free.
Best Q4: 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 $137.5 million, up 6.5% year on year, outperforming analyst expectations by 2.9%. It was an exceptional quarter for the company, with an impressive beat of analysts' earnings estimates.
The stock is up 26.4% since the results and currently trades at $16.99.
Is now the time to buy Smith & Wesson? Access our full analysis of the earnings results here, it's free.
Slowest Q4: Clarus (NASDAQ:CLAR)
Initially a financial services business, Clarus (NASDAQ:CLAR) designs, manufactures, and distributes outdoor equipment and lifestyle products.
Clarus reported revenues of $76.5 million, up 3.6% year on year, falling short of analyst expectations by 8.7%. It was a weak quarter for the company, with full-year revenue guidance missing analysts' expectations and a miss of analysts' revenue estimates.
Clarus had the weakest performance against analyst estimates and weakest full-year guidance update in the group. The stock is up 15.7% since the results and currently trades at $6.1.
Read our full analysis of Clarus'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 $211.1 million, down 37.7% year on year, falling short of analyst expectations by 4.1%. It was a weak quarter for the company, with a miss of analysts' revenue estimates. Guidance was also worrisome, with the company anticipating revenue to be down "mid-to-high thirties percentage, year-over-year" compared to 2023, which missed Wall Street's estimates.
Malibu Boats had the slowest revenue growth among its peers. The stock is down 33.7% since the results and currently trades at $33.82.
Read our full, actionable report on Malibu Boats here, it's free.
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 $90.87 million, down 15.8% year on year, surpassing analyst expectations by 4.5%. It was a mixed quarter for the company, with an impressive beat of analysts' earnings estimates but full-year revenue guidance missing analysts' expectations.
The stock is down 6.8% since the results and currently trades at $3.06.
Read our full, actionable report on Latham here, it's free.
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