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Q1 Earnings Outperformers: MasterCraft (NASDAQ:MCFT) And The Rest Of The Leisure Products Stocks


Anthony Lee /
2024/07/04 8:46 am EDT

Earnings results often indicate what direction a company will take in the months ahead. With Q1 now behind us, let’s have a look at MasterCraft (NASDAQ:MCFT) 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. Valuation multiples for many growth stocks have not yet reverted to their early 2021 highs, but the market was optimistic at the end of 2023 due to cooling inflation. The start of 2024 has been a different story as mixed signals have led to market volatility, and leisure products stocks have had a rough stretch, with share prices down 5.7% on average since the previous earnings results.

MasterCraft (NASDAQ:MCFT)

Started by a waterskiing instructor, MasterCraft (NASDAQ:MCFT) specializes in designing, manufacturing, and selling sport boats.

MasterCraft reported revenues of $95.71 million, down 42.6% year on year, topping analysts' expectations by 3.1%. It was a weak quarter for the company, with full-year revenue guidance missing analysts' expectations.

Brad Nelson, Chief Executive Officer, commented, “We delivered results ahead of our expectations in what remains a dynamic and challenging environment for the marine industry. My first six weeks with our team has been energizing, and it is clear to me that our capabilities and opportunities are even greater than I anticipated. Since I joined the Company, I have been on the road meeting with and getting to know our team, our customers, dealers and business partners. The headline takeaways, are highly encouraging - the foundation of the business is strong, MasterCraft is home to iconic and leading brands, customers and dealers love our products, and the long-term outlook for the industry is bright. We are laser focused on and well-positioned to navigate the near-term challenges in our industry as we evolve our long-term growth strategy.”

MasterCraft Total Revenue

MasterCraft delivered the weakest full-year guidance update of the whole group. The stock is down 13.2% since the results and currently trades at $17.42.

Read our full report on MasterCraft here, it's free.

Best Q1: 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 $159.1 million, up 9.9% year on year, outperforming analysts' expectations by 1.5%. It was a very strong quarter for the company: Smith & Wesson blew past analysts' EPS expectations. Its operating margin also outperformed Wall Street's estimates.

Smith & Wesson Total Revenue

The stock is down 12.9% since the results and currently trades at $14.29.

Is now the time to buy Smith & Wesson? 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 $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. Its revenue, operating margin, and EPS fell short of Wall Street's estimates.

Ruger had the weakest performance against analyst estimates in the group. The stock is down 10.9% since the results and currently trades at $41.3.

Read our full analysis of Ruger's results here.

Peloton (NASDAQ:PTON)

Started as a Kickstarter campaign, Peloton (NASDAQ: PTON) is a fitness technology company known for its at-home exercise equipment and interactive online workout classes.

Peloton reported revenues of $717.7 million, down 4.2% year on year, in line with analysts' expectations. It was a weak quarter for the company, with a miss of analysts' earnings estimates and full-year revenue guidance missing analysts' expectations.

The stock is up 3.6% since the results and currently trades at $3.35.

Read our full, actionable report on Peloton here, it's free.

Acushnet (NYSE:GOLF)

Producer of the acclaimed Titleist Pro V1 golf ball, Acushnet (NYSE:GOLF) is a design and manufacturing company specializing in performance-driven golf products.

Acushnet reported revenues of $707.6 million, up 3.1% year on year, surpassing analysts' expectations by 2.7%. It was a decent quarter for the company, with a narrow beat of analysts' earnings estimates.

The stock is down 1.8% since the results and currently trades at $62.

Read our full, actionable report on Acushnet here, it's free.

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