Outdoor lifestyle and recreational products company Solo Brands (NYSE: DTC) will be reporting earnings tomorrow before market open. Here’s what investors should know.
Solo Brands missed analysts’ revenue expectations by 11.2% last quarter, reporting revenues of $143.5 million, down 13.2% year on year. It was a disappointing quarter for the company, with a significant miss of analysts’ EBITDA estimates and a significant miss of analysts’ EPS estimates.
Is Solo Brands a buy or sell going into earnings? Read our full analysis here, it’s free.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Solo Brands has missed Wall Street’s revenue estimates three times over the last two years.
Looking at Solo Brands’s peers in the leisure products segment, some have already reported their Q1 results, giving us a hint as to what we can expect. Malibu Boats delivered year-on-year revenue growth of 12.4%, beating analysts’ expectations by 2.4%, and Harley-Davidson reported a revenue decline of 23.1%, falling short of estimates by 1.2%. Malibu Boats traded down 1% following the results while Harley-Davidson was up 5%.
Read our full analysis of Malibu Boats’s results here and Harley-Davidson’s results here.
There has been positive sentiment among investors in the leisure products segment, with share prices up 9% on average over the last month. Solo Brands is down 34.8% during the same time and is heading into earnings with an average analyst price target of $0.64 (compared to the current share price of $0.09).
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