Earnings results often indicate what direction a company will take in the months ahead. With Q1 behind us, let’s have a look at Latham (NASDAQ: SWIM) 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 10 leisure products stocks we track reported a mixed Q1. As a group, revenues beat analysts’ consensus estimates by 1.3% while next quarter’s revenue guidance was 5.1% below.
Thankfully, share prices of the companies have been resilient as they are up 7.4% on average since the latest earnings results.
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 $111.4 million, flat year on year. This print was in line with analysts’ expectations, and overall, it was a strong quarter for the company with a solid beat of analysts’ adjusted operating income estimates and full-year revenue guidance exceeding analysts’ expectations.
Commenting on the results, Scott Rajeski, President and CEO, said, “Our first quarter results were in line with our expectations and reflected the relative strength of Latham’s fiberglass pool and autocover product categories and the ongoing benefits from our lean manufacturing and value engineering initiatives.
Latham pulled off the highest full-year guidance raise of the whole group. The results were likely priced in, however, and the stock is flat since reporting. It currently trades at $5.92.
Is now the time to buy Latham? Access our full analysis of the earnings results here, it’s free.
Best Q1: Harley-Davidson (NYSE: HOG)
Founded in 1903, Harley-Davidson (NYSE: HOG) is an American motorcycle manufacturer known for its heavyweight motorcycles designed for cruising on highways.
Harley-Davidson reported revenues of $1.33 billion, down 23.1% year on year, falling short of analysts’ expectations by 1.2%. However, the business still had a very strong quarter with a solid beat of analysts’ EPS estimates and an impressive beat of analysts’ adjusted operating income estimates.
The market seems happy with the results as the stock is up 5.9% since reporting. It currently trades at $23.71.
Is now the time to buy Harley-Davidson? 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 $135.7 million, flat year on year, falling short of analysts’ expectations by 8.3%. It was a disappointing quarter as it posted a significant miss of analysts’ EPS and EBITDA estimates.
Ruger delivered the weakest performance against analyst estimates in the group. As expected, the stock is down 8.3% since the results and currently trades at $37.26.
Read our full analysis of Ruger’s results here.
Brunswick (NYSE: BC)
Formerly known as Brunswick-Balke-Collender Company, Brunswick (NYSE: BC) is a designer and manufacturer of recreational marine products, including boats, engines, and marine parts.
Brunswick reported revenues of $1.22 billion, down 10.5% year on year. This number surpassed analysts’ expectations by 7.9%. Zooming out, it was a mixed quarter as it also recorded an impressive beat of analysts’ EPS estimates but full-year EPS guidance missing analysts’ expectations significantly.
Brunswick delivered the biggest analyst estimates beat among its peers. The stock is up 21.6% since reporting and currently trades at $55.01.
Read our full, actionable report on Brunswick 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 $1.56 billion, down 11.4% year on year. This result topped analysts’ expectations by 1%. Aside from that, it was a mixed quarter as it also produced an impressive beat of analysts’ EBITDA estimates but revenue guidance for next quarter missing analysts’ expectations.
The stock is up 18.8% since reporting and currently trades at $40.05.
Read our full, actionable report on Polaris here, it’s free.
Market Update
As a result of the Fed’s rate hikes in 2022 and 2023, inflation has come down from frothy levels post-pandemic. The general rise in the price of goods and services is trending towards the Fed’s 2% goal as of late, which is good news. The higher rates that fought inflation also didn't slow economic activity enough to catalyze a recession. So far, soft landing. This, combined with recent rate cuts (half a percent in September 2024 and a quarter percent in November 2024) have led to strong stock market performance in 2024. The icing on the cake for 2024 returns was Donald Trump’s victory in the U.S. Presidential Election in early November, sending major indices to all-time highs in the week following the election. Still, debates around the health of the economy and the impact of potential tariffs and corporate tax cuts remain, leaving much uncertainty around 2025.
Want to invest in winners with rock-solid fundamentals? Check out our Strong Momentum Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.
