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Bull of the Day: Johnson Outdoors (JOUT)

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Johnson Outdoors Inc. is a leading outdoor recreation company known for its innovative, high-quality products. It operates across categories—Watercraft, Marine Electronics, Diving, and Outdoor Equipment—and some of its popular brands include Old Town canoes and kayaks, Escape electric boats, and Lendal paddles.

Q4 Earnings: Another Big Quarter

JOUT posted higher sales and earnings in its fourth quarter fiscal 2019 report.

Total revenue grew 14% year-over-year to $104 million thanks to continued momentum in the company’s Fishing division. And for fiscal 2019, sales grew 3% to $562.4 million.

EPS came in at 39 cents per share, easily beating the Zacks Consensus Estimate of a loss of 21 cents a share. Net profit was $3.9 million compared to a net loss of $5 million in fiscal 2018.

The company’s North American diving market was particularly strong, and JOUT saw solid growth in certain camping products; its Old Town brand also had a great quarter.

“We’re pleased by the strong finish to the year, particularly with the performance of Fishing and Camping brands. Looking ahead, we continue to believe the power of our innovation, the enduring strength of our brand equities and the diversity of our outdoor recreation portfolio combine to well-position Johnson Outdoors for the future,” said CEO Helen Johnson-Leipold.

JOUT is on the Rise

Johnson Outdoors Inc. Price and Consensus

 

Shares of JOUT are up almost 27% over the last one year, getting a nice bump after its fourth quarter earnings report; the stock surged 19%. Earnings estimates have been rising too, and Johnson Outdoors is a Zacks Rank #1 (Strong Buy) right now.

For the current fiscal year, one analyst revised their bottom line estimate upwards in the last 60 days, and the Zacks Consensus Estimate has moved up 47 cents from $4.65 to $5.12 per share; earnings could see positive growth compared to the prior year period, too. 2021 looks pretty strong too, with earnings and revenue expected to continue positive year-over-year growth.

JOUT currently trades around 15X its forward full-year earnings estimates, lower than the broader Consumer Discretionary Market (23.6X).

If you’re an investor searching for a growing recreation stock to add to your portfolio, make sure to keep JOUT on your shortlist.

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