Winners And Losers Of Q4: Latham (NASDAQ:SWIM) Vs The Rest Of The Leisure Products Stocks
The end of an earnings season can be a great time to assess how companies are handling the current business environment and discover new stocks. Let’s take a look at how Latham (NASDAQ:SWIM) 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 18 leisure products stocks we track reported a weaker Q4; on average, revenues missed analyst consensus estimates by 0.7% while next quarter's revenue guidance was 7.6% below consensus. Stocks have been under pressure as inflation (despite slowing) makes their long-dated profits less valuable, but leisure products stocks held their ground better than others, with the share prices up 7.2% on average since the previous 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 $90.87 million, down 15.8% year on year, topping analyst expectations by 4.5%. It was a decent quarter for the company, with an impressive beat of analysts' earnings estimates but full-year revenue guidance missing analysts' expectations.
Commenting on the results, Scott Rajeski, President and CEO, said, “Latham navigated a very difficult market environment in 2023. We successfully implemented cost reduction programs and lean manufacturing initiatives that structurally reduced our cost basis, while maintaining our investments in future growth. These cost reduction programs improved margins as the year progressed and we expect they will enable us to considerably expand margins and overall profitability once volumes recover. At the same time, we increased productivity and efficiency for our dealers, developed new fiberglass pool models, and invested in digital tools that have enhanced the consumer’s pool buying experience. As a result of these actions, Latham is positioned for meaningful market share gains as overall industry conditions improve.
Latham pulled off the biggest analyst estimates beat of the whole group. The stock is up 14.8% since the results and currently trades at $3.77.
Is now the time to buy Latham? Access our full analysis of the earnings results 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 28.6% since the results and currently trades at $17.28.
Is now the time to buy Smith & Wesson? Access our full analysis of the earnings results here, it's free.
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 $1.36 billion, down 14% year on year, falling short of analyst expectations by 5.4%. It was a weak quarter for the company, with full-year revenue guidance missing analysts' expectations.
The stock is up 19% since the results and currently trades at $95.87.
Read our full analysis of Brunswick's results here.
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 among its peers. The stock is up 29.8% since the results and currently trades at $6.84.
Read our full, actionable report on Clarus here, it's free.
Johnson Outdoors (NASDAQ:JOUT)
Operating in locations worldwide, Johnson Outdoors (NASDAQ:JOUT) specializes in innovative outdoor recreational products for adventurers worldwide.
Johnson Outdoors reported revenues of $138.6 million, down 22.3% year on year, falling short of analyst expectations by 1.3%. It was a slower quarter for the company, with a miss of analysts' revenue estimates.
The stock is down 0.4% since the results and currently trades at $45.35.
Read our full, actionable report on Johnson Outdoors here, it's free.
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