We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Nautilus' (NLS) Q3 Earnings Beat Estimates, Revenues Up Y/Y
Read MoreHide Full Article
Nautilus reported third-quarter 2020 adjusted earnings of 87 cents per share that beat the Zacks Consensus Estimate by 135.1%. The company had reported a loss of 29 cents per share in the year-ago quarter.
Revenues of $155.4 million beat the consensus mark by 30.3%. Moreover, the figure grew 151.8% year over year. Accelerated demand for the company’s home fitness products like Schwinn IC4 and Bowflex C6 connected-fitness bikes, Bowflex Home Gyms, and SelectTech weights despite the reopening of gyms has contributed to the top-line growth.
Segment Details
Direct Segment revenues (39.4% of the total revenues) surged 278.8% year over year to $61.2 million. Revenues from Cardio Products and Strength Products jumped 256.2% and 349.2% year over year to $44.3 million and $16.9 million, respectively.
Retail Segment revenues (60% of the total revenues) surged 107.8% year over year to $93.2 million. Revenues from Cardio Products and Strength Products soared 102.6% and 128% year over year to $71.9 million and $21.2 million, respectively.
Nautilus Group, Inc. The Price, Consensus and EPS Surprise
Strong adoption of online shopping and increased use of curbside pickup services induced by the coronavirus outbreak, have driven revenues in the Retail segment.
As of Sep 30, 2020, the direct backlog was $23 million compared to $20.6 million as of Jun 30, 2020. Retail backlog was $44.6 million compared to $13.6 million in the year-ago quarter. Retail backlog in the third quarter was mainly driven by the lack of outgoing shipping containers from China.
Operating Details
Gross Profit on a GAAP basis surged 256.3% year over year to $67.9 million from $19.1 million in the year-ago quarter. Moreover, the gross margin expanded 12.8% year over year to 44%.
The growth was driven by improved margins in both direct and retail segments, partially offset by higher transportation costs due to the global logistics disruptions caused by the pandemic.
Selling and Marketing expenses grew 8.26% year over year to $19.2 million. General and Administrative expenses jumped 31.5% year over year to $8.8 million. Research and Development expenses rose 35.8% year over year to $4.2 million.
Nautilus reported adjusted operating income of $35.7 million, up 532% year over year. Adjusted operating margin expanded 36.3% year over year to 22.9%.
Adjusted EBITDA was $37.1 million, up 771.4% year over year.
Balance Sheet
As of Sep 30, 2020, Nautilus had cash & cash equivalents worth $70.1 million compared with $45.7 million as of Jun 30, 2020.
Guidance
Nautilus expects 2020 revenues between $540 million and $565 million. Adjusted EBITDA for the year is expected between $90 million and $100 million.
The company expects gross margin for fourth-quarter 2020 to be lower than the third quarter due to increased transportation costs as well as additional resources disbursed to support increased volumes.
Operating expenses are expected to increase primarily due to higher marketing expenses incurred on the launch of new connected fitness products.
Zacks Rank & Stocks to Consider
Currently, Nautilus carries a Zacks Rank #3 (Hold).
Shoe Carnival, Beacon Roofing and Signet Jewelers are set to release their quarterly earnings on Nov 18, Nov 19 and Dec 3, respectively.
Biggest Tech Breakthrough in a Generation
Be among the early investors in the new type of device that experts say could impact society as much as the discovery of electricity. Current technology will soon be outdated and replaced by these new devices. In the process, it’s expected to create 22 million jobs and generate $12.3 trillion in activity.
A select few stocks could skyrocket the most as rollout accelerates for this new tech. Early investors could see gains similar to buying Microsoft in the 1990s. Zacks’ just-released special report reveals 8 stocks to watch. The report is only available for a limited time.
Image: Bigstock
Nautilus' (NLS) Q3 Earnings Beat Estimates, Revenues Up Y/Y
Nautilus reported third-quarter 2020 adjusted earnings of 87 cents per share that beat the Zacks Consensus Estimate by 135.1%. The company had reported a loss of 29 cents per share in the year-ago quarter.
Revenues of $155.4 million beat the consensus mark by 30.3%. Moreover, the figure grew 151.8% year over year. Accelerated demand for the company’s home fitness products like Schwinn IC4 and Bowflex C6 connected-fitness bikes, Bowflex Home Gyms, and SelectTech weights despite the reopening of gyms has contributed to the top-line growth.
Segment Details
Direct Segment revenues (39.4% of the total revenues) surged 278.8% year over year to $61.2 million. Revenues from Cardio Products and Strength Products jumped 256.2% and 349.2% year over year to $44.3 million and $16.9 million, respectively.
Retail Segment revenues (60% of the total revenues) surged 107.8% year over year to $93.2 million. Revenues from Cardio Products and Strength Products soared 102.6% and 128% year over year to $71.9 million and $21.2 million, respectively.
Nautilus Group, Inc. The Price, Consensus and EPS Surprise
Nautilus Group, Inc. The price-consensus-eps-surprise-chart | Nautilus Group, Inc. The Quote
Strong adoption of online shopping and increased use of curbside pickup services induced by the coronavirus outbreak, have driven revenues in the Retail segment.
As of Sep 30, 2020, the direct backlog was $23 million compared to $20.6 million as of Jun 30, 2020. Retail backlog was $44.6 million compared to $13.6 million in the year-ago quarter. Retail backlog in the third quarter was mainly driven by the lack of outgoing shipping containers from China.
Operating Details
Gross Profit on a GAAP basis surged 256.3% year over year to $67.9 million from $19.1 million in the year-ago quarter. Moreover, the gross margin expanded 12.8% year over year to 44%.
The growth was driven by improved margins in both direct and retail segments, partially offset by higher transportation costs due to the global logistics disruptions caused by the pandemic.
Selling and Marketing expenses grew 8.26% year over year to $19.2 million. General and Administrative expenses jumped 31.5% year over year to $8.8 million. Research and Development expenses rose 35.8% year over year to $4.2 million.
Nautilus reported adjusted operating income of $35.7 million, up 532% year over year. Adjusted operating margin expanded 36.3% year over year to 22.9%.
Adjusted EBITDA was $37.1 million, up 771.4% year over year.
Balance Sheet
As of Sep 30, 2020, Nautilus had cash & cash equivalents worth $70.1 million compared with $45.7 million as of Jun 30, 2020.
Guidance
Nautilus expects 2020 revenues between $540 million and $565 million. Adjusted EBITDA for the year is expected between $90 million and $100 million.
The company expects gross margin for fourth-quarter 2020 to be lower than the third quarter due to increased transportation costs as well as additional resources disbursed to support increased volumes.
Operating expenses are expected to increase primarily due to higher marketing expenses incurred on the launch of new connected fitness products.
Zacks Rank & Stocks to Consider
Currently, Nautilus carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the broader Retail-Wholesale sector are Beacon Roofing Supply (BECN - Free Report) , Shoe Carnival (SCVL - Free Report) and Signet Jewelers Limited (SIG - Free Report) . Signet Jewelers sports a Zacks Rank #1 (Strong Buy), while Beacon Roofing and Shoe Carnival carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Shoe Carnival, Beacon Roofing and Signet Jewelers are set to release their quarterly earnings on Nov 18, Nov 19 and Dec 3, respectively.
Biggest Tech Breakthrough in a Generation
Be among the early investors in the new type of device that experts say could impact society as much as the discovery of electricity. Current technology will soon be outdated and replaced by these new devices. In the process, it’s expected to create 22 million jobs and generate $12.3 trillion in activity.
A select few stocks could skyrocket the most as rollout accelerates for this new tech. Early investors could see gains similar to buying Microsoft in the 1990s. Zacks’ just-released special report reveals 8 stocks to watch. The report is only available for a limited time.
See 8 breakthrough stocks now>>