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 Malibu Boats (NASDAQ: MBUU) 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 10 leisure products stocks we track reported a mixed Q1. As a group, revenues beat analysts’ consensus estimates by 1.4% while next quarter’s revenue guidance was 5.2% below.
Thankfully, share prices of the companies have been resilient as they are up 9.5% on average since the latest earnings results.
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 $228.7 million, up 12.4% year on year. This print exceeded analysts’ expectations by 2.4%. Overall, it was a strong quarter for the company with a solid beat of analysts’ adjusted operating income estimates.
“Our team executed effectively in the third quarter, navigating ongoing market challenges by leveraging our strong brands, disciplined operational performance, and continued focus on dealer health,” commented Steve Menneto, Chief Executive Officer of Malibu Boats,
Malibu Boats achieved the fastest revenue growth of the whole group. Unsurprisingly, the stock is up 10.9% since reporting and currently trades at $32.89.
Is now the time to buy Malibu Boats? 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 an exceptional quarter with an impressive beat of analysts’ EPS estimates and a solid beat of analysts’ adjusted operating income estimates.
The market seems happy with the results as the stock is up 11.7% since reporting. It currently trades at $25.
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 estimates and a miss of analysts’ EBITDA estimates.
Ruger delivered the weakest performance against analyst estimates in the group. As expected, the stock is down 9% since the results and currently trades at $36.99.
Read our full analysis of Ruger’s results here.
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 $703.4 million, flat year on year. This result surpassed analysts’ expectations by 0.7%. Zooming out, it was a satisfactory quarter as it also logged an impressive beat of analysts’ EPS estimates but a miss of analysts’ Titleist Clubs revenue estimates.
The stock is up 8.2% since reporting and currently trades at $70.28.
Read our full, actionable report on Acushnet 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 $111.4 million, flat year on year. This number was in line with analysts’ expectations. It was a very strong quarter as it also recorded an impressive beat of analysts’ adjusted operating income estimates and full-year revenue guidance exceeding analysts’ expectations.
Latham scored the highest full-year guidance raise among its peers. The stock is up 11% since reporting and currently trades at $6.63.
Read our full, actionable report on Latham here, it’s free.
Market Update
Thanks to the Fed’s rate hikes in 2022 and 2023, inflation has been on a steady path downward, easing back toward that 2% sweet spot. Fortunately (miraculously to some), all this tightening didn’t send the economy tumbling into a recession, so here we are, cautiously celebrating a soft landing. The cherry on top? Recent rate cuts (half a point in September 2024, a quarter in November) have propped up markets, especially after Trump’s November win lit a fire under major indices and sent them to all-time highs. However, there’s still plenty to ponder — tariffs, corporate tax cuts, and what 2025 might hold for the economy.
Want to invest in winners with rock-solid fundamentals? Check out our 9 Best Market-Beating Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.
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