Q3 Earnings Roundup: Acushnet (NYSE:GOLF) And The Rest Of The Leisure Products Segment

December 24, 2024 at 04:04 AM EST

GOLF Cover Image

Let’s dig into the relative performance of Acushnet (NYSE: GOLF) and its peers as we unravel the now-completed Q3 leisure products earnings season.

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 5% since the latest earnings results.

Acushnet (NYSE: GOLF)

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 print was in line with analysts’ expectations, and overall, it was a strong quarter for the company with a solid beat of analysts’ adjusted operating income estimates and an impressive beat of analysts’ EPS estimates.

Interestingly, the stock is up 11.2% since reporting and currently trades at $70.45.

Is now the time to buy Acushnet? Access our full analysis of the earnings results 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 a solid beat of analysts’ EPS estimates and an impressive beat of analysts’ EBITDA estimates.

American Outdoor Brands pulled off the highest full-year guidance raise among its peers. The market seems happy with the results as the stock is up 39.9% since reporting. It currently trades at $15.25.

Is now the time to buy American Outdoor Brands? Access our full analysis of the earnings results here, it’s free.

Weakest Q3: Clarus (NASDAQ: CLAR)

Initially a financial services business, Clarus (NASDAQ: CLAR) designs, manufactures, and distributes outdoor equipment and lifestyle products.

Clarus reported revenues of $67.12 million, down 17.4% year on year, falling short of analysts’ expectations by 8.1%. It was a disappointing quarter as it posted full-year revenue guidance missing analysts’ expectations.

Clarus delivered the weakest full-year guidance update in the group. As expected, the stock is down 9.5% since the results and currently trades at $4.30.

Read our full analysis of Clarus’s results here.

Johnson Outdoors (NASDAQ: JOUT)

Operating in locations worldwide, Johnson Outdoors (NASDAQ: JOUT) specializes in innovative outdoor recreational products for adventurers worldwide.

Johnson Outdoors reported revenues of $105.9 million, up 9.9% year on year. This print missed analysts’ expectations by 7.9%. It was a disappointing quarter as it also logged a significant miss of analysts’ EPS estimates.

The stock is up 4.8% since reporting and currently trades at $36.25.

Read our full, actionable report on Johnson Outdoors 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 $94.14 million, down 14.7% year on year. This number topped analysts’ expectations by 1.7%. More broadly, it was a mixed quarter as it also recorded a solid beat of analysts’ adjusted operating income estimates but a significant miss of analysts’ EPS estimates.

The stock is down 24.4% since reporting and currently trades at $1.10.

Read our full, actionable report on Solo Brands 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 has 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.

Want to invest in winners with rock-solid fundamentals? Check out our Top 5 Quality Compounder Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.

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