The end of the earnings season is always a good time to take a step back and see who shined (and who not so much). Let’s take a look at how leisure products stocks fared in Q1, starting with MasterCraft (NASDAQ: MCFT).
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.
In light of this news, share prices of the companies have held steady as they are up 1.5% on average since the latest earnings results.
MasterCraft (NASDAQ: MCFT)
Started by a waterskiing instructor, MasterCraft (NASDAQ: MCFT) specializes in designing, manufacturing, and selling sport boats.
MasterCraft reported revenues of $75.96 million, down 9.5% year on year. This print exceeded analysts’ expectations by 1.4%. Despite the top-line beat, it was still a mixed quarter for the company with a solid beat of analysts’ EPS estimates but a miss of analysts’ boats sold estimates.
Brad Nelson, Chief Executive Officer, commented, “Our business performed well during the third quarter against a backdrop of macroeconomic and demand uncertainty. Our near-term focus continues to be centered around closely managing production levels, driving focused innovation, and delivering operating efficiencies – all while maximizing cash flow and aggressively managing costs.”
MasterCraft delivered the weakest full-year guidance update of the whole group. Interestingly, the stock is up 5.3% since reporting and currently trades at $16.62.
Is now the time to buy MasterCraft? 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 a very strong 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 5.4% since reporting. It currently trades at $23.61.
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 and EBITDA estimates.
Ruger delivered the weakest performance against analyst estimates in the group. As expected, the stock is down 12.6% since the results and currently trades at $35.54.
Read our full analysis of Ruger’s results here.
Polaris (NYSE: PII)
Founded in 1954, Polaris (NYSE: PII) designs and manufactures high-performance off-road vehicles, snowmobiles, and motorcycles.
Polaris reported revenues of $1.56 billion, down 11.4% year on year. This result beat analysts’ expectations by 1.7%. Aside from that, it was a mixed quarter as it also logged a solid beat of analysts’ EBITDA estimates but revenue guidance for next quarter missing analysts’ expectations.
The stock is up 14.8% since reporting and currently trades at $38.70.
Read our full, actionable report on Polaris here, it’s free.
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 $351.1 million, up 2.9% year on year. This print topped analysts’ expectations by 1.2%. More broadly, it was a mixed quarter as it also recorded an impressive beat of analysts’ adjusted operating income estimates but full-year EPS guidance missing analysts’ expectations.
The stock is up 8.2% since reporting and currently trades at $30.25.
Read our full, actionable report on YETI here, it’s free.
Market Update
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% in November), 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 potential trade policy changes and corporate tax discussions, which could impact business confidence and growth. The path forward holds both optimism and caution as new policies take shape.
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