Johnson Outdoors Earnings: What to Look for in a JOUT

Outdoor products company Johnson Outdoors (NASDAQ:JOUT) will release its earnings report tomorrow before market hours open. Here’s what to expect.

Johnson Outdoors beat analyst revenue expectations by 10.8% in the latest quarter, reporting revenue of $175.9 million, down 13% year over year. It was a mixed quarter for the company, with earnings falling short of analyst estimates.

Is Johnson Outdoors a buy or sell on earnings? Read our full analysis here, it’s free.

Analysts are expecting Johnson Outdoors revenue to decline 5.8% year over year for the quarter to $176.1 million, an improvement from the 8.2% decline in the same quarter last year. Adjusted earnings are expected to come in at $0.22 per share.

Ahead of the earnings launch, analysts covering the company had become increasingly bearish, with revenue estimates seeing 1 downward revision in the past 30 days. Johnson Outdoors has missed Wall Street revenue estimates twice in the past two years.

Looking at Johnson Outdoors’ competitors in the recreational segment, some have already reported second-quarter results, giving us a hint of what to expect. Harley-Davidson reported year-over-year revenue growth of 12%, beating analyst expectations of 27.2%, while Clarus reported a 2.5% revenue decline, down 4.8% from estimates. Harley-Davidson posted an 8.7% increase following the earnings announcement, while Clarus fell 13.9%.

Read our full analysis of Harley-Davidson’s results here and Clarus’ results here.

Investors in the recreational segment are in positive spirits, with shares up an average of 3.3% over the past month. Johnson Outdoors is up 19.4% in the same time frame and is on track for profit with an average analyst price target of $52 (compared to the current share price of $40.54).

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