Outdoor lifestyle and recreational products company Solo Brands (NYSE:DTC) will be reporting earnings tomorrow before market hours. Here’s what investors should know.
Solo Brands beat analysts’ revenue expectations by 2.4% last quarter, reporting revenues of $131.6 million, flat year on year. It was a softer quarter for the company, with full-year revenue guidance missing analysts’ expectations.
Is Solo Brands a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting Solo Brands’s revenue to decline 16.1% year on year to $92.61 million, a reversal from the 8% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.03 per share.
The majority of analysts covering the company have 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 twice over the last two years.
Looking at Solo Brands’s peers in the leisure products segment, some have already reported their Q3 results, giving us a hint as to what we can expect. Malibu Boats’s revenues decreased 32.9% year on year, beating analysts’ expectations by 2.6%, and Latham reported a revenue decline of 6.4%, falling short of estimates by 1.1%. Malibu Boats traded up 4.3% following the results.
Read our full analysis of Malibu Boats’s results here and Latham’s results here.
There has been positive sentiment among investors in the leisure products segment, with share prices up 3.3% on average over the last month. Solo Brands is up 4.4% during the same time and is heading into earnings with an average analyst price target of $1.95 (compared to the current share price of $1.43).
When a company has more cash than it knows what to do with, buying back its own shares can make a lot of sense–as long as the price is right. Luckily, we’ve found one, a low-priced stock that is gushing free cash flow AND buying back shares. Click here to claim your Special Free Report on a fallen angel growth story that is already recovering from a setback.
