The end of the earnings season is always a good time to take a step back and see who shined (and who not so much). Let’s take a look at how leisure products stocks fared in Q3, starting with Ruger (NYSE: RGR).

Leisure products cover a wide range of goods in the consumer discretionary sector. Maintaining a strong brand is key to success, and those who differentiate themselves will enjoy customer loyalty and pricing power while those who don’t may find themselves in precarious positions due to the non-essential nature of their offerings.

The 12 leisure products stocks we track reported a very strong Q3. As a group, revenues beat analysts’ consensus estimates by 3.8% while next quarter’s revenue guidance was in line.

In light of this news, share prices of the companies have held steady. On average, they are relatively unchanged since the latest earnings results.

Weakest Q3: Ruger (NYSE: RGR)

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

Ruger reported revenues of $126.8 million, up 3.7% year on year. This print exceeded analysts’ expectations by 2.1%. Despite the top-line beat, it was still a softer quarter for the company with a significant miss of analysts’ EBITDA and EPS estimates.

Unsurprisingly, the stock is down 29.1% since reporting and currently trades at $31.18.

Read our full report on Ruger here, it’s free for active Edge members.

Best Q3: American Outdoor Brands (NASDAQ: AOUT)

Spun off from Smith and Wesson in 2020, American Outdoor Brands (NASDAQ: AOUT) is an outdoor and recreational products company that offers outdoor and shooting sports products but does not sell firearms themselves.

American Outdoor Brands reported revenues of $57.2 million, down 5% year on year, outperforming analysts’ expectations by 12.3%. The business had an incredible quarter with a beat of analysts’ EPS and EBITDA estimates.

American Outdoor Brands achieved the biggest analyst estimates beat among its peers. The market seems happy with the results as the stock is up 7.4% since reporting. It currently trades at $8.30.

Is now the time to buy American Outdoor Brands? Access our full analysis of the earnings results here, it’s free for active Edge members.

Latham (NASDAQ: SWIM)

Started as a family business, Latham (NASDAQ: SWIM) is a global designer and manufacturer of in-ground residential swimming pools and related products.

Latham reported revenues of $161.9 million, up 7.6% year on year, falling short of analysts’ expectations by 1.8%. It was a mixed quarter as it posted an impressive beat of analysts’ adjusted operating income estimates but a significant miss of analysts’ EPS estimates.

Latham delivered the weakest performance against analyst estimates in the group. As expected, the stock is down 12.3% since the results and currently trades at $6.31.

Read our full analysis of Latham’s results here.

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 $124.7 million, down 3.9% year on year. This number surpassed analysts’ expectations by 0.8%. It was an exceptional quarter as it also put up a beat of analysts’ EPS estimates and a solid beat of analysts’ EBITDA estimates.

The stock is up 12.7% since reporting and currently trades at $10.05.

Read our full, actionable report on Smith & Wesson here, it’s free for active Edge members.

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 $657.7 million, up 6% year on year. This print beat analysts’ expectations by 3.8%. Overall, it was a strong quarter as it also produced an impressive beat of analysts’ adjusted operating income estimates and a solid beat of analysts’ EBITDA estimates.

The stock is up 8.9% since reporting and currently trades at $81.96.

Read our full, actionable report on Acushnet here, it’s free for active Edge members.

Market Update

As a result of the Fed’s rate hikes in 2022 and 2023, inflation has come down from frothy levels post-pandemic. The general rise in the price of goods and services is trending towards the Fed’s 2% goal as of late, which is good news. The higher rates that fought inflation also didn't slow economic activity enough to catalyze a recession. So far, soft landing. This, combined with recent rate cuts (half a percent in September 2024 and a quarter percent in November 2024) have led to strong stock market performance in 2024. The icing on the cake for 2024 returns was Donald Trump’s victory in the U.S. Presidential Election in early November, sending major indices to all-time highs in the week following the election. Still, debates around the health of the economy and the impact of potential tariffs and corporate tax cuts remain, leaving much uncertainty around 2025.

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