Mastercraft Boat Holdings on Track for Longest Winning Streak Since February 2022 — Data Talk

Wrapping up Q3 earnings, we look at the numbers and key takeaways for the leisure products stocks, including American Outdoor Brands 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 very strong Q3. As a group, revenues beat analysts’ consensus estimates by 3.8% while next quarter’s revenue guidance was in line.

In light of this news, share prices of the companies have held steady. On average, they are relatively unchanged since the latest earnings results.

Best Q3: American Outdoor Brands

Spun off from Smith and Wesson in 2020, American Outdoor Brands 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. This print exceeded analysts’ expectations by 12.3%. Overall, it was an incredible quarter for the company with a beat of analysts’ EPS and EBITDA estimates.

Brian Murphy, President and CEO, said, "Our commitment to innovation, paired with disciplined execution of our long-term strategy to enter new outdoor categories, is fueling the strength of our growth brands and the engagement we are seeing from consumers and retail partners. Pull-through of our products at retail was notably strong during the quarter, with total POS up 4% year-over-year. Together, these factors enabled us to deliver second-quarter results that surpassed our expectations, even amid a dynamic retail backdrop.

American Outdoor Brands scored the biggest analyst estimates beat but had the slowest revenue growth of the whole group. Unsurprisingly, the stock is up 7.4% since reporting and currently trades at $8.30.

Harley-Davidson

Founded in 1903, Harley-Davidson is an American motorcycle manufacturer known for its heavyweight motorcycles designed for cruising on highways.

Harley-Davidson reported revenues of $1.34 billion, up 16.5% year on year, outperforming analysts’ expectations by 2.8%. The business had a stunning quarter with a beat of analysts’ EPS estimates and an impressive beat of analysts’ EBITDA estimates.

Harley-Davidson delivered the 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 22.7% since reporting. It currently trades at $20.96.

Weakest Q3: Ruger

Founded in 1949, Ruger 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 29.1% since the results and currently trades at $31.18.

Read our full analysis of Ruger’s results here.

MasterCraft

Started by a waterskiing instructor, MasterCraft specializes in designing, manufacturing, and selling sport boats.

MasterCraft reported revenues of $69 million, up 5.6% year on year. This print surpassed analysts’ expectations by 3%. Overall, it was a very strong quarter as it also put up a beat of analysts’ EPS estimates and a solid beat of analysts’ EBITDA estimates.

MasterCraft delivered the highest full-year guidance raise among its peers. The stock is down 7.6% since reporting and currently trades at $19.82.

Read our full, actionable report on MasterCraft here, it’s free for active Edge members.

Malibu Boats

Founded in California in 1982, Malibu Boats is a manufacturer of high-performance sports boats and luxury watercrafts.

Malibu Boats reported revenues of $194.7 million, up 13.5% year on year. This result beat analysts’ expectations by 4.3%. It was an exceptional quarter as it also recorded a beat of analysts’ EPS estimates and an impressive beat of analysts’ adjusted operating income estimates.

The stock is down 10.4% since reporting and currently trades at $29.19.

Read our full, actionable report on Malibu Boats here, it’s free for active Edge members.

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 YETI .

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 very strong Q3. As a group, revenues beat analysts’ consensus estimates by 3.8% while next quarter’s revenue guidance was in line.

In light of this news, share prices of the companies have held steady. On average, they are relatively unchanged since the latest earnings results.

YETI

Founded by two brothers from Texas, YETI specializes in durable outdoor goods including coolers, drinkware, and other gear tailored to adventure enthusiasts.

YETI reported revenues of $487.8 million, up 1.9% year on year. This print exceeded analysts’ expectations by 1.6%. Overall, it was a satisfactory quarter for the company with a decent beat of analysts’ EBITDA estimates.

Matt Reintjes, President and Chief Executive Officer, commented, “Our third quarter results continue to show the strength of YETI and the positive momentum of our long-term growth strategy. Anchored in accelerating product innovation, a powerful and growing global brand, and expanding international reach, we are seeing meaningful wins across all three strategic growth pillars. As we look beyond 2025, continued execution against these three pillars sets YETI on the path to a long-term topline growth range of high-single-digits to low-double-digits."

Interestingly, the stock is up 31.7% since reporting and currently trades at $43.97.

Best Q3: American Outdoor Brands

Spun off from Smith and Wesson in 2020, American Outdoor Brands 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 an impressive beat of analysts’ EBITDA estimates.

American Outdoor Brands pulled off the biggest analyst estimates beat among its peers. The market seems happy with the results as the stock is up 8.1% since reporting. It currently trades at $8.35.

Weakest Q3: Ruger

Founded in 1949, Ruger 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 and EPS estimates.

As expected, the stock is down 27.5% since the results and currently trades at $31.87.

Read our full analysis of Ruger’s results here.

MasterCraft

Started by a waterskiing instructor, MasterCraft specializes in designing, manufacturing, and selling sport boats.

MasterCraft reported revenues of $69 million, up 5.6% year on year. This print beat analysts’ expectations by 3%. Overall, it was a very strong quarter as it also produced a beat of analysts’ EPS estimates and an impressive beat of analysts’ EBITDA estimates.

MasterCraft delivered the highest full-year guidance raise among its peers. The stock is down 8.5% since reporting and currently trades at $19.64.

Read our full, actionable report on MasterCraft here, it’s free for active Edge members.

Polaris

Founded in 1954, Polaris designs and manufactures high-performance off-road vehicles, snowmobiles, and motorcycles.

Polaris reported revenues of $1.86 billion, up 6.6% year on year. This number topped analysts’ expectations by 3.7%. It was a very strong quarter as it also recorded a beat of analysts’ EPS estimates and an impressive beat of analysts’ EBITDA estimates.

Polaris had the weakest full-year guidance update among its peers. The stock is down 2% since reporting and currently trades at $69.73.

Read our full, actionable report on Polaris here, it’s free for active Edge members.

What Happened?

A number of stocks jumped in the afternoon session after comments from a key Federal Reserve official bolstered hopes for an interest rate cut. New York Federal Reserve President John Williams stated he sees “room for a further adjustment” in the near term, sparking a significant market rally. Following his remarks, the probability of the central bank cutting rates at its December meeting jumped from 39% to over 73%, according to the CME FedWatch tool. This positive sentiment provided relief to markets amid concerns over high valuations, particularly in AI-related stocks.

The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks.

Among others, the following stocks were impacted:

• Travel and Vacation Providers company Hyatt Hotels jumped 5.9%. Is now the time to buy Hyatt Hotels? Access our full analysis report here, it’s free for active Edge members.
• Leisure Products company MasterCraft jumped 5.7%. Is now the time to buy MasterCraft? Access our full analysis report here, it’s free for active Edge members.
• Casino Operator company MGM Resorts jumped 5.8%. Is now the time to buy MGM Resorts? Access our full analysis report here, it’s free for active Edge members.

Zooming In On Hyatt Hotels (H)

Hyatt Hotels’s shares are somewhat volatile and have had 10 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.

The biggest move we wrote about over the last year was 3 months ago when the stock gained 5.1% on the news that comments from Federal Reserve Chair Jerome Powell opened the door to potential interest rate cuts. Powell's comments at the Jackson Hole Economic Policy Symposium suggested that the central bank could begin to cut interest rates, sparking a widespread rally across Wall Street. The Dow Jones Industrial Average surged by as much as 900 points to an all-time high, with the S&P 500 and Nasdaq also seeing significant gains. For cyclical companies like Hyatt, the prospect of lower interest rates is particularly favorable as it can lead to reduced borrowing costs and stimulate consumer spending on travel and leisure, boosting investor confidence in the hospitality sector.

Hyatt Hotels is up 1.8% since the beginning of the year, and at $159.10 per share, it is trading close to its 52-week high of $166.34 from February 2025. Investors who bought $1,000 worth of Hyatt Hotels’s shares 5 years ago would now be looking at an investment worth $2,222.

Quarterly earnings results are a good time to check in on a company’s progress, especially compared to its peers in the same sector. Today we are looking at Malibu Boats and the best and worst performers in the leisure products industry.

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 10 leisure products stocks we track reported a strong Q3. As a group, revenues beat analysts’ consensus estimates by 3.3% while next quarter’s revenue guidance was in line.

While some leisure products stocks have fared somewhat better than others, they have collectively declined. On average, share prices are down 4.5% since the latest earnings results.

Malibu Boats

Founded in California in 1982, Malibu Boats is a manufacturer of high-performance sports boats and luxury watercrafts.

Malibu Boats reported revenues of $194.7 million, up 13.5% year on year. This print exceeded analysts’ expectations by 4.3%. Overall, it was an exceptional quarter for the company with a beat of analysts’ EPS and adjusted operating income estimates.

“We delivered strong results in the first quarter in what continues to be a challenging market environment. Prioritizing dealer health remains central to our strategy, and our team executed with discipline to keep channel inventories aligned,” said Steve Menneto, President and Chief Executive Officer of Malibu Boats, Inc.

Unsurprisingly, the stock is down 18.5% since reporting and currently trades at $26.54.

Is now the time to buy Malibu Boats? Access our full analysis of the earnings results here, it’s free for active Edge members.

Best Q3: Harley-Davidson

Founded in 1903, Harley-Davidson is an American motorcycle manufacturer known for its heavyweight motorcycles designed for cruising on highways.

Harley-Davidson reported revenues of $1.34 billion, up 16.5% year on year, outperforming analysts’ expectations by 2.8%. The business had an exceptional quarter with a beat of analysts’ EPS and adjusted operating income estimates.

Harley-Davidson achieved the 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 6.4% since reporting. It currently trades at $25.37.

Is now the time to buy Harley-Davidson? Access our full analysis of the earnings results here, it’s free for active Edge members.

Weakest Q3: Ruger

Founded in 1949, Ruger 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 and EPS estimates.

As expected, the stock is down 28.1% since the results and currently trades at $31.60.

Read our full analysis of Ruger’s results here.

Acushnet

Producer of the acclaimed Titleist Pro V1 golf ball, Acushnet 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 result surpassed analysts’ expectations by 3.8%. Overall, it was a strong quarter as it also logged an impressive beat of analysts’ adjusted operating income estimates and a solid beat of analysts’ EBITDA estimates.

Acushnet scored the highest full-year guidance raise among its peers. The stock is up 10.1% since reporting and currently trades at $83.00.

Read our full, actionable report on Acushnet here, it’s free for active Edge members.

MasterCraft

Started by a waterskiing instructor, MasterCraft specializes in designing, manufacturing, and selling sport boats.

MasterCraft reported revenues of $69 million, up 5.6% year on year. This number beat analysts’ expectations by 3%. It was a very strong quarter as it also produced a beat of analysts’ EPS estimates and a solid beat of analysts’ EBITDA estimates.

The stock is down 11.5% since reporting and currently trades at $18.99.

Read our full, actionable report on MasterCraft here, it’s free for active Edge members.

Market Update

The Fed’s interest rate hikes throughout 2022 and 2023 have successfully cooled post-pandemic inflation, bringing it closer to the 2% target. Inflationary pressures have eased without tipping the economy into a recession, suggesting a soft landing. This stability, paired with recent rate cuts (0.5% in September 2024 and 0.25% in November 2024), fueled a strong year for the stock market in 2024. The markets surged further after Donald Trump’s presidential victory in November, with major indices reaching record highs in the days following the election. Still, questions remain about the direction of economic policy, as potential tariffs and corporate tax changes add uncertainty for 2025.