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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 Smith & Wesson (NASDAQ:SWBI) 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 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.
Amidst this news, share prices of the companies have had a rough stretch. On average, they are down 5.3% since the latest earnings results.
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 $129.7 million, up 3.8% year on year. This print fell short of analysts’ expectations by 2.9%. Overall, it was a disappointing quarter for the company with a significant miss of analysts’ EPS estimates.
Unsurprisingly, the stock is down 23.8% since reporting and currently trades at $10.39.
Read our full report on Smith & Wesson here, it’s free.
Best Q3: 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 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 scored the highest full-year guidance raise among its peers. The market seems happy with the results as the stock is up 49% since reporting. It currently trades at $16.24.
Is now the time to buy American Outdoor Brands? Access our full analysis of the earnings results here, it’s free.
Weakest Q3: Ruger (NYSE:RGR)
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.