Laser Focus World is an industry bedrock—first published in 1965 and still going strong. We publish original articles about cutting-edge advances in lasers, optics, photonics, sensors, and quantum technologies, as well as test and measurement, and the shift currently underway to usher in the photonic integrated circuits, optical interconnects, and copackaged electronics and photonics to deliver the speed and efficiency essential for data centers of the future.

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Editorial Advisory Board

  • Professor Andrea M. Armani, University of Southern California
  • Ruti Ben-Shlomi, Ph.D., LightSolver
  • James Butler, Ph.D., Hamamatsu
  • Natalie Fardian-Melamed, Ph.D., Columbia University
  • Justin Sigley, Ph.D., AmeriCOM
  • Professor Birgit Stiller, Max Planck Institute for the Science of Light, and Leibniz University of Hannover
  • Professor Stephen Sweeney, University of Glasgow
  • Mohan Wang, Ph.D., University of Oxford
  • Professor Xuchen Wang, Harbin Engineering University
  • Professor Stefan Witte, Delft University of Technology

Spotting Winners: Acushnet (NYSE:GOLF) And Leisure Products Stocks In Q1

GOLF Cover Image

As the Q1 earnings season wraps, let’s dig into this quarter’s best and worst performers in the leisure products industry, including Acushnet (NYSE: GOLF) 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 12 leisure products stocks we track reported a mixed Q1. As a group, revenues beat analysts’ consensus estimates by 2.7% while next quarter’s revenue guidance was 5.1% below.

Luckily, leisure products stocks have performed well with share prices up 11.9% on average 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 $703.4 million, flat year on year. This print exceeded analysts’ expectations by 0.7%. Despite the top-line beat, it was still a mixed quarter for the company with a decent beat of analysts’ EPS estimates but a miss of analysts’ Titleist Clubs revenue estimates.

Acushnet Total Revenue

Interestingly, the stock is up 18.1% since reporting and currently trades at $76.68.

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

Best Q1: 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 outdoor and shooting sports products but does not sell firearms themselves.

American Outdoor Brands reported revenues of $61.94 million, up 33.8% year on year, outperforming analysts’ expectations by 27.8%. 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 Total Revenue

American Outdoor Brands scored the biggest analyst estimates beat and fastest revenue growth among its peers. Although it had a fine quarter compared its peers, the market seems unhappy with the results as the stock is down 16.6% since reporting. It currently trades at $10.06.

Is now the time to buy American Outdoor 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 $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 9.4% since the results and currently trades at $36.84.

Read our full analysis of Ruger’s results here.

Latham (NASDAQ: SWIM)

Started as a family business, Latham (NASDAQ: SWIM) is a global designer and manufacturer of in-ground residential swimming pools and related products.

Latham reported revenues of $111.4 million, flat year on year. This number met analysts’ expectations. Overall, it was a strong quarter as it also put up an impressive beat of analysts’ adjusted operating income estimates and full-year revenue guidance exceeding analysts’ expectations.

Latham scored the highest full-year guidance raise among its peers. The stock is up 16.2% since reporting and currently trades at $6.94.

Read our full, actionable report on Latham 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 result beat analysts’ expectations by 1.2%. More broadly, it was a mixed quarter as it also recorded a solid beat of analysts’ adjusted operating income estimates but full-year EPS guidance missing analysts’ expectations significantly.

The stock is up 18.1% since reporting and currently trades at $33.04.

Read our full, actionable report on YETI here, it’s free.

Market Update

As a result of the Fed’s rate hikes in 2022 and 2023, inflation has come down from frothy levels post-pandemic. The general rise in the price of goods and services is trending towards the Fed’s 2% goal as of late, which is good news. The higher rates that fought inflation also didn't slow economic activity enough to catalyze a recession. So far, soft landing. This, combined with recent rate cuts (half a percent in September 2024 and a quarter percent in November 2024) have led to strong stock market performance in 2024. The icing on the cake for 2024 returns was Donald Trump’s victory in the U.S. Presidential Election in early November, sending major indices to all-time highs in the week following the election. Still, debates around the health of the economy and the impact of potential tariffs and corporate tax cuts remain, leaving much uncertainty around 2025.

Want to invest in winners with rock-solid fundamentals? Check out our Top 6 Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.

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