Outdoor entertainment company Solo Brands (NYSE:DTC) will report earnings results tomorrow before the market opens. Here’s what you need to know.
Solo Brands beat analysts’ revenue expectations last quarter, reporting revenue of $165.3 million, down 16.2% year-over-year. It was a weak quarter for the company as analysts missed earnings estimates.
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Analysts expect Solo Brands’ revenue to decline 11.6% year over year to $78 million this quarter, a reversal from the 7.3% growth recorded in the same quarter last year. Adjusted loss is expected to be -$0.01 per share.
Most analysts covering the company have reiterated their estimates over the past 30 days, suggesting they expect the business to continue on its earnings path. Over the past two years, Solo Brands has missed Wall Street earnings estimates three times.
Looking at Solo Brands’ competitors in the leisure segment, several of them have already reported their first-quarter results, giving us a hint of what we can expect. Johnson outdoors Revenue (NASDAQ:) fell 13% year over year, beating analysts’ expectations by 10.8%, and Ruger reported an 8.5% decline in revenue, missing estimates by 10.8%. Johnson Outdoors shares fell 11.7% at the close.
Read the full analysis of Johnson Outdoors and Ruger on StockStory.
At the end of 2023, inflation reached the Fed’s target of 2%, leading to a strong stock market performance. The start to 2024 was more difficult as the market switched between optimism and pessimism about rate cuts due to mixed inflation data, and while some leisure stocks performed slightly better, they were not spared, with share prices falling by 2.1. % on average for the last month. Solo Brands shares are down 1.5% over the same period and are approaching earnings, with an average analyst price target of $4 (versus the current share price of $1.95).
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