YETI Holdings (NYSE:YETI) shares skyrocketed by over 15% today after the outdoor products provider reported robust first-quarter growth and hiked its financial outlook.
Don't Miss our Black Friday Offers:
- Unlock your investing potential with TipRanks Premium - Now At 40% OFF!
- Make smarter investments with weekly expert stock picks from the Smart Investor Newsletter
YETI’s Bumper Q1
YETI’s Q1 revenue jumped by 12.7% year-over-year to $341.4 million. The figure outpaced expectations by roughly $8.1 million. Additionally, EPS of 0.34 comfortably outpaced consensus by $0.10. Impressively, this was a nearly 89% jump in the company’s bottom line.
The jump in the company’s top line was led by a 13% increase in the net sales of Drinkware and a 32% rise in International net sales. Additionally, its Coolers and Equipment net sales rose by 15%. Importantly, the company witnessed double-digit gains across its wholesale and direct-to-consumer channels.
Additionally, lower inbound freight and product costs helped YETI expand its gross margin by 360 basis points to 57.1%. Concurrently, its operating margin expanded by 260 basis points to 7.6%.
YETI’s Promising Outlook
Buoyed by this performance, YETI hiked its bottom-line expectations for the full year. It now expects an EPS of 2.49-$2.62 for FY2024 versus the prior estimate of $2.45-$2.50. It foresees an increase of 7%-9% in its top line for the full year. Previously, YETI had announced a share repurchase program of up to $300 million. So far it has repurchased shares worth $100 million.
What Is the Price Outlook for YETI Stock?
Despite today’s price gains, YETI’s share price is still down by nearly 55% over the past three years. Overall, the Street has a Moderate Buy consensus rating on the stock, alongside an average YETI price target of $46.70. However, analysts’ views on the company could see changes following today’s bumper earnings report.
Read full Disclosure
