Johnson Outdoors (NASDAQ:JOUT) Posts Earnings Results, Beats Estimates By $0.12 EPS

Johnson Outdoors (NASDAQ:JOUT) posted its quarterly earnings results on Friday. The company reported ($0.33) EPS for the quarter, topping analysts’ consensus estimates of ($0.45) by $0.12, Zacks reports. Johnson Outdoors had a negative return on equity of 1.92% and a negative net margin of 5.79%.The firm had revenue of $140.94 million during the quarter, compared to analyst estimates of $123.95 million.

Here are the key takeaways from Johnson Outdoors’ conference call:

• Double-digit revenue growth in Q1 driven mainly by unit-volume gains as markets stabilized and strong demand for new products (Humminbird XPLORE/MEGA Live 2, Minn Kota motors, Jetboil systems, SCUBAPRO HYDROS PRO 2) supported performance.
• Profitability materially improved: loss before income taxes narrowed to $1.3 million (from $18.9 million prior-year) and gross margin rose to 36.6%, aided by overhead absorption, pricing and cost-savings actions.
• Balance sheet strength highlighted by a debt-free position, inventory reduction to $183.9 million (down ~$17.7 million YoY), and continuation of a meaningful dividend.
• Digital and e-commerce investments are accelerating growth—management said e-commerce is the fastest-growing channel and is a strategic focus to drive discoverability and sales.
• Tax expense was about $2 million due to a U.S. valuation allowance adjustment, and management warned the effective tax rate may be “wonky” going forward because of where profits are recognized.

Johnson Outdoors Trading Down 3.1%

Johnson Outdoors stock opened at $46.88 on Friday. The firm has a market cap of $487.97 million, a P/E ratio of -21.41, a P/E/G ratio of 3.19 and a beta of 0.91. Johnson Outdoors has a 1-year low of $21.33 and a 1-year high of $50.99. The firm has a 50-day moving average of $44.21 and a 200-day moving average of $41.36.

Johnson Outdoors Dividend Announcement

The company also recently disclosed a quarterly dividend, which was paid on Thursday, January 22nd. Stockholders of record on Thursday, January 8th were paid a dividend of $0.33 per share. This represents a $1.32 annualized dividend and a dividend yield of 2.8%. The ex-dividend date of this dividend was Thursday, January 8th. Johnson Outdoors’s dividend payout ratio is -60.27%.

Analyst Ratings Changes

Several equities research analysts have recently weighed in on the company. Weiss Ratings reiterated a “sell (d)” rating on shares of Johnson Outdoors in a research report on Monday, December 29th. Wall Street Zen raised shares of Johnson Outdoors from a “buy” rating to a “strong-buy” rating in a report on Saturday. Finally, Zacks Research raised shares of Johnson Outdoors from a “strong sell” rating to a “hold” rating in a report on Thursday, October 30th. One research analyst has rated the stock with a Hold rating and one has assigned a Sell rating to the company. According to data from MarketBeat, the stock has an average rating of “Reduce”.

Insider Buying and Selling

In other Johnson Outdoors news, Director Edward F. Lang sold 2,000 shares of the company’s stock in a transaction that occurred on Wednesday, December 17th. The stock was sold at an average price of $43.94, for a total transaction of $87,880.00. Following the completion of the transaction, the director owned 32,171 shares of the company’s stock, valued at $1,413,593.74. This represents a 5.85% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available at the SEC website. 28.21% of the stock is owned by insiders.

Institutional Trading of Johnson Outdoors

Several large investors have recently bought and sold shares of the company. Rhumbline Advisers raised its position in shares of Johnson Outdoors by 3.7% in the 2nd quarter. Rhumbline Advisers now owns 8,066 shares of the company’s stock worth $244,000 after acquiring an additional 289 shares in the last quarter. Sei Investments Co. boosted its position in shares of Johnson Outdoors by 5.8% during the second quarter. Sei Investments Co. now owns 11,409 shares of the company’s stock valued at $345,000 after purchasing an additional 622 shares in the last quarter. Ameriprise Financial Inc. grew its stake in Johnson Outdoors by 2.2% in the second quarter. Ameriprise Financial Inc. now owns 56,022 shares of the company’s stock worth $1,696,000 after purchasing an additional 1,190 shares during the period. Empowered Funds LLC raised its holdings in Johnson Outdoors by 7.6% in the first quarter. Empowered Funds LLC now owns 20,782 shares of the company’s stock worth $516,000 after purchasing an additional 1,468 shares in the last quarter. Finally, Raymond James Financial Inc. bought a new position in Johnson Outdoors in the second quarter worth $52,000. 64.05% of the stock is owned by institutional investors.

Johnson Outdoors News Summary

Here are the key news stories impacting Johnson Outdoors this week:

• Positive Sentiment: Revenue surged 31% to $140.9M, well above estimates — broad-based strength led by fishing, camping and diving sales. Read More.
• Positive Sentiment: GAAP EPS loss of $(0.33) beat the consensus $(0.45), and operating loss narrowed sharply to $(2.9)M from $(20.2)M a year ago — evidence of improving profitability. Read More.
• Positive Sentiment: Gross margin improved to 36.6% (from 29.9%) and cash + short-term investments rose to $130.7M; the company also declared a quarterly cash dividend. These items support liquidity and shareholder returns. Read More.
• Neutral Sentiment: Segment detail: fishing revenue up ~36% (new product traction), camping & watercraft +12%, diving +15% — seasonal selling periods still ahead (Q2–Q3). Management emphasized continued investments in new products and digital commerce. Read More.
• Negative Sentiment: Net loss remains $(3.3)M and the company still shows a negative net margin and negative ROE; analysts expect the company to remain unprofitable this year (consensus ~-0.58 EPS). Continued losses leave valuation metrics and forward profitability uncertain. Read More.
• Negative Sentiment: Operating expenses rose modestly (to $54.5M) and other legacy costs still weigh on margins; investors may be taking profits after a recent run, contributing to today’s downward stock move and higher-than-normal volume. Read More.

About Johnson Outdoors

Johnson Outdoors Inc is a diversified outdoor recreation company that develops, manufactures and markets a broad range of gear and equipment for marine and land-based activities. The company operates through two primary segments: the Marine Electronics & Boat Group and the Outdoor Products Group. Its marine offerings include electric motors and anchors under the Minn Kota® brand, fish-finding and sonar systems under the Humminbird® brand, and a lineup of recreational watercraft under the Old Town® and Ocean Kayak® names.