Q1 Leisure Products Earnings Review: First Prize Goes to Harley-Davidson (NYSE:HOG)
Earnings results often indicate what direction a company will take in the months ahead. With Q1 now behind us, let’s have a look at Harley-Davidson (NYSE:HOG) 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 16 leisure products stocks we track reported a mixed Q1; on average, revenues beat analyst consensus estimates by 4.3%. while next quarter's revenue guidance was 3.5% below consensus. Inflation progressed towards the Fed's 2% goal at the end of 2023, leading to strong stock market performance. The start of 2024 has been a bumpier ride, as the market switches between optimism and pessimism around rate cuts due to mixed inflation data, and while some of the leisure products stocks have fared somewhat better than others, they collectively declined, with share prices falling 0.4% on average since the previous earnings results.
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 $1.73 billion, down 3.3% year on year, exceeding analysts' expectations by 28.4%. Overall, it was an impressive quarter for the company with a decent beat of analysts' earnings estimates.
Harley-Davidson pulled off the biggest analyst estimates beat of the whole group. The stock is down 12.8% since reporting and currently trades at $34.38.
Is now the time to buy Harley-Davidson? Access our full analysis of the earnings results here, it's free.
Solo Brands (NYSE:DTC)
Started through a Kickstarter campaign, Solo Brands (NYSE:DTC) is a provider of outdoor and recreational products.
Solo Brands reported revenues of $85.32 million, down 3.3% year on year, outperforming analysts' expectations by 9.4%. It was a very strong quarter for the company with an impressive beat of analysts' earnings estimates and full-year revenue guidance beating analysts' expectations.
The market seems happy with the results as the stock is up 25.9% since reporting. It currently trades at $2.48.
Is now the time to buy Solo Brands? 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 $136.8 million, down 8.5% year on year, falling short of analysts' expectations by 10.8%. It was a weak quarter for the company with some shareholders hoping for a better result.
Ruger had the weakest performance against analyst estimates in the group. As expected, the stock is down 8.5% since the results and currently trades at $42.40.
Read our full analysis of Ruger'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 $203.4 million, down 45.8% year on year, falling short of analysts' expectations by 1.5%. More broadly, it was a weak quarter for the company with a miss of analysts' boats sold estimates and a miss of analysts' earnings estimates.
Malibu Boats had the slowest revenue growth among its peers. The stock is up 3.6% since reporting and currently trades at $34.25.
Read our full, actionable report on Malibu Boats here, it's free.
Polaris (NYSE:PII)
Founded in 1954, Polaris (NYSE:PII) designs and manufactures high-performance off-road vehicles, snowmobiles, and motorcycles.
Polaris reported revenues of $1.76 billion, down 19.9% year on year, in line with analysts' expectations. Overall, it was a weak quarter for the company with a miss of analysts' earnings estimates.
The stock is down 6.9% since reporting and currently trades at $82.12.
Read our full, actionable report on Polaris here, it's free.
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