Q3 Earnings Roundup: Latham (NASDAQ:SWIM) And The Rest Of The Leisure Products Segment
As the Q3 earnings season wraps, let’s dig into this quarter’s best and worst performers in the leisure products industry, including 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 14 leisure products stocks we track reported a slower Q3. As a group, revenues beat analysts’ consensus estimates by 0.6% while next quarter’s revenue guidance was 1.1% below.
While some leisure products stocks have fared somewhat better than others, they have collectively declined. On average, share prices are down 3.5% 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 $150.5 million, down 6.4% year on year. This print fell short of analysts’ expectations by 1.1%. Overall, it was a mixed quarter for the company with an impressive beat of analysts’ adjusted operating income estimates but full-year revenue guidance missing analysts’ expectations.
Commenting on the results, Scott Rajeski, President and CEO, said, “We continued to execute well within a difficult industry environment, increasing awareness and adoption of fiberglass pools and automatic safety covers, gaining production efficiencies, and controlling costs, while investing in initiatives to drive future growth."
Latham Total Revenue
Interestingly, the stock is up 4.3% since reporting and currently trades at $6.85.
Spun off from Smith and Wesson in 2020, American Outdoor Brands (NASDAQ:AOUT) is an outdoor and recreational products company that offers firearms and firearm accessories.
American Outdoor Brands reported revenues of $60.23 million, up 4% year on year, outperforming analysts’ expectations by 13.1%. The business had an incredible quarter with an impressive beat of analysts’ EPS estimates and a solid beat of analysts’ EBITDA estimates.
American Outdoor Brands Total Revenue
American Outdoor Brands delivered the highest full-year guidance raise among its peers. The market seems happy with the results as the stock is up 55.7% since reporting. It currently trades at $16.97.
Founded in 1949, Ruger (NYSE:RGR) is an American manufacturer of firearms for the commercial sporting market.
Ruger reported revenues of $122.3 million, up 1.2% year on year, falling short of analysts’ expectations by 10.8%. It was a disappointing quarter as it posted a significant miss of analysts’ EBITDA and EPS estimates.
Ruger delivered the weakest performance against analyst estimates in the group. As expected, the stock is down 12.4% since the results and currently trades at $35.71.
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 $620.5 million, up 4.6% year on year. This number met analysts’ expectations. It was a strong quarter as it also recorded an impressive beat of analysts’ adjusted operating income estimates and a solid beat of analysts’ EPS estimates.
The stock is up 17.8% since reporting and currently trades at $74.60.
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 $1.27 billion, down 20.1% year on year. This result lagged analysts' expectations by 1.3%. It was a softer quarter as it also logged full-year EPS guidance missing analysts’ expectations.
The stock is down 12.3% since reporting and currently trades at $67.53.
Thanks to the Fed's series of rate hikes in 2022 and 2023, inflation has cooled significantly from its post-pandemic highs, drawing closer to the 2% goal. This disinflation has occurred without severely impacting economic growth, suggesting the success of a soft landing. The stock market thrived in 2024, spurred by recent rate cuts (0.5% in September and 0.25% each in November and December), and a notable surge followed Donald Trump's presidential election win in November, propelling indices to historic highs. Nonetheless, the outlook for 2025 remains clouded by the pace and magnitude of future rate cuts as well as potential changes in trade policy and corporate taxes once the Trump administration takes over. The path forward is marked by uncertainty.
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