Quarterly earnings results are a good time to check in on a company’s progress, especially compared to its peers in the same sector. Today we are looking at Smith & Wesson (NASDAQ: SWBI) and the best and worst performers in the consumer discretionary - leisure products industry.

The Consumer Discretionary sector, by definition, is made up of companies selling non-essential goods and services. When economic conditions deteriorate or tastes shift, consumers can easily cut back or eliminate these purchases. For long-term investors with five-year holding periods, this creates a structural challenge: the sector is inherently hit-driven, with low switching costs and fickle customers. As a result, only a handful of companies can reliably grow demand and compound earnings over long periods, which is why our bar is high and High Quality ratings are rare. Leisure products companies manufacture recreational goods such as bicycles, marine vessels, fitness equipment, camping gear, and musical instruments. Tailwinds include heightened outdoor-activity participation, health-and-wellness awareness, and periodic innovation cycles that drive trade-up purchases. Headwinds are pronounced: demand is highly discretionary and sensitive to economic cycles—consumers readily defer big-ticket leisure purchases during downturns. Post-pandemic normalization has created excess channel inventory after demand surged then retreated. Raw-material and shipping cost inflation squeezes margins, while competition from low-cost imports and a fragmented market make pricing power elusive for most players.

The 12 consumer discretionary - leisure products stocks we track reported a strong Q4. As a group, revenues beat analysts’ consensus estimates by 4.6% while next quarter’s revenue guidance was 1.8% below.

Amidst this news, share prices of the companies have had a rough stretch. On average, they are down 9.7% since the latest earnings results.

Best Q4: Smith & Wesson (NASDAQ: SWBI)

With a history dating back to 1852, Smith & Wesson (NASDAQ: SWBI) is a firearms manufacturer known for its handguns and rifles.

Smith & Wesson reported revenues of $135.7 million, up 17.1% year on year. This print exceeded analysts’ expectations by 8.1%. Overall, it was an incredible quarter for the company with a beat of analysts’ EPS estimates and an impressive beat of analysts’ EBITDA estimates.

Smith & Wesson achieved the fastest revenue growth of the whole group. Unsurprisingly, the stock is up 19.1% since reporting and currently trades at $14.05.

Is now the time to buy Smith & Wesson? Access our full analysis of the earnings results here, it’s free.

MasterCraft (NASDAQ: MCFT)

Started by a waterskiing instructor, MasterCraft (NASDAQ: MCFT) specializes in designing, manufacturing, and selling sport boats.

MasterCraft reported revenues of $71.76 million, up 13.2% year on year, outperforming analysts’ expectations by 4.1%. The business had a stunning quarter with a beat of analysts’ EPS estimates and an impressive beat of analysts’ EBITDA estimates.

Although it had a fine quarter compared its peers, the market seems unhappy with the results as the stock is down 13.5% since reporting. It currently trades at $19.99.

Is now the time to buy MasterCraft? Access our full analysis of the earnings results here, it’s free.

Slowest Q4: Harley-Davidson (NYSE: HOG)

Founded in 1903, Harley-Davidson (NYSE: HOG) is an American motorcycle manufacturer known for its heavyweight motorcycles designed for cruising on highways.

Harley-Davidson reported revenues of $496.2 million, down 27.8% year on year, exceeding analysts’ expectations by 3.4%. Still, it was a softer quarter as it posted a significant miss of analysts’ adjusted operating income estimates and a significant miss of analysts’ EBITDA estimates.

Harley-Davidson delivered the slowest revenue growth in the group. As expected, the stock is down 12.5% since the results and currently trades at $17.62.

Read our full analysis of Harley-Davidson’s results here.

Acushnet (NYSE: GOLF)

Producer of the acclaimed Titleist Pro V1 golf ball, Acushnet (NYSE: GOLF) is a design and manufacturing company specializing in performance-driven golf products.

Acushnet reported revenues of $477.2 million, up 7.2% year on year. This number beat analysts’ expectations by 5.1%. Aside from that, it was a mixed quarter as it also recorded an impressive beat of analysts’ revenue estimates but a significant miss of analysts’ EPS estimates.

The stock is down 5.1% since reporting and currently trades at $94.44.

Read our full, actionable report on Acushnet here, it’s free.

Ruger (NYSE: RGR)

Founded in 1949, Ruger (NYSE: RGR) is an American manufacturer of firearms for the commercial sporting market.

Ruger reported revenues of $151.1 million, up 3.6% year on year. This print topped analysts’ expectations by 8.5%. Overall, it was a strong quarter as it also logged a solid beat of analysts’ EBITDA estimates and an impressive beat of analysts’ revenue estimates.

The stock is up 3.2% since reporting and currently trades at $39.16.

Read our full, actionable report on Ruger here, it’s free.

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