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Nautilus (NLS) to Report Q4 Earnings: What's in the Cards?

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Nautilus is set to report fourth-quarter 2020 results on Feb 22.

For the quarter, the Zacks Consensus Estimate for earnings has been unrevised at 76 cents per share over the past 30 days. The company reported earnings of 12 cents in the year-ago quarter.

The consensus mark for revenues is pegged at $190.7 million, suggesting an 83.1% surge from the year-ago quarter’s reported figure.

Notably, the company’s earnings beat the Zacks Consensus Estimate in all of the trailing four quarters, the average surprise being 294%.

Let’s see how things have shaped up prior to this announcement.

 

Nautilus Group, Inc. The Price and EPS Surprise Nautilus Group, Inc. The Price and EPS Surprise

Nautilus Group, Inc. The price-eps-surprise | Nautilus Group, Inc. The Quote

Factors to Consider

Nautilus’ fourth-quarter performance is likely to have benefited from strong demand for its home-fitness equipment despite the reopening of gyms.

Notably, pandemic-induced social-distancing practices have compelled gym goers to shift to at-home fitness. This is anticipated to have continued to drive growth for the company’s home-fitness solutions in the to-be-reported quarter as well.

In addition, steady demand for Nautilus’ connected fitness bikes, the Schwinn IC4, Bowflex C6, Bowflex Home Gyms and SelectTech weights and benches is anticipated to have fueled the top-line performance of the retail as well as the direct segment.

Additionally, the growing adoption of online shopping, along with curbside pick-up services of Nautilus’ retail partners, is expected to have boosted demand for the company’s robust product offerings.

Apart from this, contributions from partnerships with e-commerce companies like Best Buy (BBY - Free Report) , Amazon (AMZN - Free Report) and DICK’S Sporting Goods (DKS - Free Report) are expected to have aided customer acquisition for this Zacks Rank #3 (Hold) company. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Furthermore, in the third quarter of 2020, the company launched Blowflex VeloCore, the first stationary, dual-mode bike, which includes a stationery setting and lean mode. The product received encouraging initial response post its release and the solid momentum in likely to have continued in the soon-to-be-reported quarter.

Apart from this, during the December-end quarter, Nautilus rolled out its new Bowflex treadmills and extended the indoor cycling bike series with the BowflexC7 connected bike, with access to the firm’s JRNY digital fitness platform. This is likely to have added significant value to the company’s existing product portfolio.

However, supply-chain disruptions such as shortage of outgoing shipping containers from China and limitations on shipping volumes from carriers might have dented the top line during the quarter.

In addition to that, the gross margin is expected to have declined sequentially on higher transportation costs and additional resources disbursed to support increased volumes. Also, elevated operating expenses resulting from higher marketing expenses spent on the launch of the connected fitness products might have played spoilsport.

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