What Happened?
Shares of outdoor lifestyle products brand (NYSE:YETI) fell 12.3% in the morning session after the company issued full-year guidance that fell short of analyst expectations, overshadowing its better-than-expected fourth-quarter results.
The premium outdoor products maker reported fourth-quarter adjusted earnings of $0.92 per share on revenue of $583.7 million. While revenue was in line with forecasts, the profit figure beat Wall Street's expectations. However, investors focused on the weaker outlook for the upcoming year. YETI's adjusted earnings per share guidance for the full-year 2026 has a midpoint of $2.80, which missed analyst consensus estimates. The report also highlighted existing pressures, as the company's operating margin for the quarter declined to 12.9% from 14.9% in the same period last year. Additionally, its adjusted earnings per share of $0.92 was down from $1.00 in the prior-year quarter, signaling a decline in year-over-year profitability despite the beat against estimates.
The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks. Is now the time to buy YETI? Access our full analysis report here, it’s free.
What Is The Market Telling Us
YETI’s shares are quite volatile and have had 18 moves greater than 5% over the last year. But moves this big are rare even for YETI and indicate this news significantly impacted the market’s perception of the business.
The biggest move we wrote about over the last year was 3 months ago when the stock gained 7.4% on the news that comments from a key Federal Reserve official bolstered hopes for an interest rate cut. New York Federal Reserve President John Williams stated he sees “room for a further adjustment” in the near term, sparking a significant market rally. Following his remarks, the probability of the central bank cutting rates at its December meeting jumped from 39% to over 73%, according to the CME FedWatch tool. This positive sentiment provided relief to markets amid concerns over high valuations, particularly in AI-related stocks.
YETI is down 2.9% since the beginning of the year, and at $43.53 per share, it is trading 14.3% below its 52-week high of $50.77 from January 2026. Investors who bought $1,000 worth of YETI’s shares 5 years ago would now be looking at an investment worth $580.48.
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