Yeti Holdings (YETI) reported better-than-expected earnings and sales for the second quarter early Thursday, with outdoor recreational equipment and beverages also heading higher. Yeti stock hasn’t been active yet after hitting a new all-time high on Wednesday.
Estimates: Wall Street expects Yeti’s earnings to rise 37% to 56 cents per share. Revenue increases 33% to $ 328.5 million, according to FactSet. Beverage sales grow 41%, with cooler and appliance sales up 30% and direct sales (DTC) up 27%.
Results: Yeti earnings soared 66% to 68 cents per share. Revenue rose 45% to $ 357.67 million, the best profit in years. Beverage sales rose 69% to $ 192.9 million; Radiator and equipment sales up 23% to $ 157.8 million. DTC revenue rose 48% to $ 196.9 million, up from 59% growth in the first quarter and 46% in the fourth quarter of 2020.
outlook: Yeti has raised its EPS forecast for 2021 from $ 2.28 to $ 2.32 in May to $ 2.42 to $ 2.46. The 14 cents increase in the middle mostly reflects the 12 cent beat of the second quarter. It now sees a 26% to 28% increase in sales over the previous 20 to 22% range.
Yeti steadily increased profits and sales throughout the coronavirus pandemic, achieving earnings per share of 246% and sales growth of 42% in the first quarter.
The share was not yet active in trading on the stock exchange early on Thursday. According to MarketSmith chart analysis, Yeti stock topped a buy point of 95.86 on July 23 after several breakouts over the past year. The buy zone from the last entry goes to 100.65. Yeti stock hit a record 102.32 on Wednesday but reversed and closed at 99.72.
Yeti stock’s relative strength line is making all-time highs, a bullish sign. A rising RS line means that a stock is outperforming the S&P 500 index.
Among other manufacturers of outdoor equipment, Vista outdoors (VSTA) and American outdoor brands (AOUT) were calm too.
Meanwhile grill baker carrier (COOK), which went public last week, is inactive as a grill maker Weber (WEBR) is preparing for its trading debut. Weber valued a scaled-back IPO at 14 per share, below the lower end of his expected range.
Yeti makes trendy and expensive coolers and drinking vessels that are popular with outdoor enthusiasts. Cooler prices range from $ 80 for personal sizes to $ 1,200 for larger sizes. It is also expanding into the luggage market, including travel bags for the more adventurous.
As the winner of the coronavirus share, Yeti benefited from the online shopping boom during the pandemic. Consumers looking to relax under lockdowns outdoors have stocked up on Yeti gear. Strong DTC sales underpinned Yeti’s recent gains. DTC sales now make up more than half of total sales.
Find Aparna Narayanan on Twitter at @IBD_Aparna.
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