Wrapping up Q2 earnings, we look at the numbers and key takeaways for the leisure products stocks, including Acushnet (NYSE:GOLF) 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 12 leisure products stocks we track reported a mixed Q2. As a group, revenues beat analysts’ consensus estimates by 3.5% while next quarter’s revenue guidance was 3% below.
In light of this news, share prices of the companies have held steady as they are up 3.9% on average since the latest earnings results.
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 $720.5 million, up 5.4% year on year. This print exceeded analysts’ expectations by 0.6%. Despite the top-line beat, it was still a mixed quarter for the company with a decent beat of analysts’ EBITDA estimates.
The market was likely pricing in the results, and the stock is flat since reporting. It currently trades at $79.37.
Is now the time to buy Acushnet? Access our full analysis of the earnings results here, it’s free for active Edge members.
Best Q2: 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 $85.08 million, down 3.7% year on year, outperforming analysts’ expectations by 7.4%. The business had an incredible quarter with a beat of analysts’ EPS and EBITDA estimates.
The market seems happy with the results as the stock is up 21.7% since reporting. It currently trades at $10.
Is now the time to buy Smith & Wesson? Access our full analysis of the earnings results here, it’s free for active Edge members.
Weakest 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 outdoor and shooting sports products but does not sell firearms themselves.
American Outdoor Brands reported revenues of $29.7 million, down 28.7% year on year, falling short of analysts’ expectations by 17%. It was a disappointing quarter as it posted a significant miss of analysts’ revenue and EBITDA estimates.
American Outdoor Brands delivered the weakest performance against analyst estimates and slowest revenue growth in the group. As expected, the stock is down 29.7% since the results and currently trades at $7.30.
Read our full analysis of American Outdoor Brands’s results here.
Malibu Boats (NASDAQ:MBUU)
Founded in California in 1982, Malibu Boats (NASDAQ:MBUU) is a manufacturer of high-performance sports boats and luxury watercrafts.
Malibu Boats reported revenues of $207 million, up 30.4% year on year. This number surpassed analysts’ expectations by 5.4%. Zooming out, it was a slower quarter as it recorded a significant miss of analysts’ EPS and adjusted operating income estimates.
The stock is down 22.1% since reporting and currently trades at $30.85.
Read our full, actionable report on Malibu Boats here, it’s free for active Edge members.
YETI (NYSE:YETI)
Founded by two brothers from Texas, YETI (NYSE:YETI) specializes in durable outdoor goods including coolers, drinkware, and other gear tailored to adventure enthusiasts.
YETI reported revenues of $445.9 million, down 3.8% year on year. This result came in 3.7% below analysts' expectations. More broadly, it was actually a very strong quarter as it logged full-year EPS guidance exceeding analysts’ expectations and a solid beat of analysts’ adjusted operating income estimates.
The stock is down 6.7% since reporting and currently trades at $33.99.
Read our full, actionable report on YETI here, it’s free for active Edge members.
Market Update
In response to the Fed’s rate hikes in 2022 and 2023, inflation has been gradually trending down from its post-pandemic peak, trending closer to the Fed’s 2% target. Despite higher borrowing costs, the economy has avoided flashing recessionary signals. This is the much-desired soft landing that many investors hoped for. The recent rate cuts (0.5% in September and 0.25% in November 2024) have bolstered the stock market, making 2024 a strong year for equities. Donald Trump’s presidential win in November sparked additional market gains, sending indices to record highs in the days following his victory. However, debates continue over possible tariffs and corporate tax adjustments, raising questions about economic stability in 2025.
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