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Q3 Rundown: Smith & Wesson (NASDAQ:SWBI) Vs Other Leisure Products Stocks

SWBI Cover Image

As the craze of earnings season draws to a close, here’s a look back at some of the most exciting (and some less so) results from Q3. Today, we are looking at leisure products stocks, starting with Smith & Wesson (NASDAQ: SWBI).

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 strong Q3. As a group, revenues beat analysts’ consensus estimates by 4.2% while next quarter’s revenue guidance was 0.7% below.

Thankfully, share prices of the companies have been resilient as they are up 6.1% on average since the latest earnings results.

Smith & Wesson (NASDAQ: SWBI)

With a history dating back to 1852, Smith & Wesson (NASDAQ: SWBI) is a firearms manufacturer known for its handguns and rifles.

Smith & Wesson reported revenues of $124.7 million, down 3.9% year on year. This print exceeded analysts’ expectations by 0.8%. Overall, it was an exceptional quarter for the company with a beat of analysts’ EPS estimates and an impressive beat of analysts’ EBITDA estimates.

Smith & Wesson Total Revenue

Interestingly, the stock is up 24.7% since reporting and currently trades at $11.12.

Is now the time to buy Smith & Wesson? 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 outdoor and shooting sports products but does not sell firearms themselves.

American Outdoor Brands reported revenues of $57.2 million, down 5% year on year, outperforming analysts’ expectations by 12.3%. The business had an incredible quarter with a 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 among its peers. The market seems happy with the results as the stock is up 19.8% since reporting. It currently trades at $9.23.

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

Weakest Q3: Ruger (NYSE: RGR)

Founded in 1949, Ruger (NYSE: RGR) is an American manufacturer of firearms for the commercial sporting market.

Ruger reported revenues of $126.8 million, up 3.7% year on year, exceeding analysts’ expectations by 2.1%. Still, it was a softer quarter as it posted a significant miss of analysts’ EBITDA estimates and a significant miss of analysts’ EPS estimates.

As expected, the stock is down 16.1% since the results and currently trades at $36.79.

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 $1.94 billion, up 9% year on year. This print surpassed analysts’ expectations by 6.8%. Aside from that, it was a mixed quarter as it also logged a beat of analysts’ EPS estimates but full-year EPS guidance missing analysts’ expectations.

The stock is down 6.9% since reporting and currently trades at $64.35.

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

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 $657.7 million, up 6% year on year. This number beat analysts’ expectations by 3.8%. Overall, it was a strong quarter as it also recorded an impressive beat of analysts’ adjusted operating income estimates and a solid beat of analysts’ EBITDA estimates.

Acushnet had the weakest full-year guidance update among its peers. The stock is up 30.6% since reporting and currently trades at $98.31.

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


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