Quarterly earnings results are a good time to check in on a company’s progress, especially compared to its peers in the same sector. Today we are looking at Ruger (NYSE:RGR) and the best and worst performers in the leisure products industry.
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 slower Q2. As a group, revenues were in line with analysts’ consensus estimates while next quarter’s revenue guidance was 16.6% below.
After much suspense, the Federal Reserve cut its policy rate by 50bps (half a percent) in September 2024. This marks the central bank’s first easing of monetary policy since 2020 and the end of its most pointed inflation-busting campaign since the 1980s. Inflation had begun to run hot in 2021 post-COVID due to a confluence of factors such as supply chain disruptions, labor shortages, and stimulus spending. While CPI (inflation) readings have been supportive lately, employment measures have prompted some concern. Going forward, the markets will debate whether this rate cut (and more potential ones in 2024 and 2025) is perfect timing to support the economy or a bit too late for a macro that has already cooled too much.
Thankfully, leisure products stocks have been resilient with share prices up 9.1% on average 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 $130.8 million, down 8.4% year on year. This print fell short of analysts’ expectations by 5%. Overall, it was a disappointing quarter for the company with some shareholders anticipating a better outcome.
Unsurprisingly, the stock is down 6.1% since reporting and currently trades at $42.36.
Read our full report on Ruger here, it’s free.
Best 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 firearms and firearm accessories.
American Outdoor Brands reported revenues of $41.64 million, down 4.1% year on year, outperforming analysts’ expectations by 1.4%. The business had a very strong quarter with an impressive beat of analysts’ earnings estimates.
Although it had a fine quarter compared its peers, the market seems unhappy with the results as the stock is down 7.5% since reporting. It currently trades at $8.49.
Is now the time to buy American Outdoor Brands? Access our full analysis of the earnings results here, it’s free.
Polaris (NYSE:PII)
Founded in 1954, Polaris (NYSE:PII) designs and manufactures high-performance off-road vehicles, snowmobiles, and motorcycles.
Polaris reported revenues of $1.96 billion, down 12.3% year on year, falling short of analysts’ expectations by 9.8%. It was a disappointing quarter as it posted a miss of analysts’ earnings estimates.
Interestingly, the stock is up 3.1% since the results and currently trades at $84.63.
Read our full analysis of Polaris’s results here.
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 $88.33 million, down 22.7% year on year. This result missed analysts’ expectations by 13.8%. Overall, it was a disappointing quarter as it also recorded a miss of analysts’ earnings estimates.
Smith & Wesson had the weakest performance against analyst estimates among its peers. The stock is down 4% since reporting and currently trades at $13.63.
Read our full, actionable report on Smith & Wesson 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 $160.1 million, down 9.6% year on year. This print beat analysts’ expectations by 2.2%. It was a very strong quarter as it also logged an impressive beat of analysts’ earnings and operating margin estimates.
Latham pulled off the highest full-year guidance raise among its peers. The stock is up 111% since reporting and currently trades at $6.52.
Read our full, actionable report on Latham here, it’s free.
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