Shares of outdoor products provider YETI Holdings (NYSE:YETI) are on the rise today after the company announced better-than-expected numbers for the third quarter but moderated its financial outlook.
While revenue remained essentially flat at $433.6 million, the figure still came in better than expectations by nearly $6 million. EPS of $0.60 outpaced estimates by $0.05. The company recently introduced an expanded line of Hopper M Series soft coolers and debuted its first eCommerce customization options outside the U.S.
Despite healthy demand, YETI’s third-quarter top line was impacted by the recalls of soft coolers the company initiated in Q1. Still, the quarter was marked by robust gains for YETI’s Rambler and Yonder product lines. Further, lower inbound freight and product costs helped the company expand its gross margin by nearly 600 basis points to 58%.
For Fiscal year 2023, the company now expects adjusted sales to rise by 4%, compared to the prior outlook of between 4% and 5%. Adjusted EPS for the year is pegged at $2.32 versus the prior outlook in the range of $2.23 to $2.32. Also, his outlook points to a 2% decline in the company’s bottom line. However, YETI anticipates earnings growth in the fourth quarter.
Is YETI a Good Stock to Buy Now?
Overall, the Street has a Moderate Buy consensus rating on YETI. After a nearly 23% rise in its share price over the past year, the average YETI price target of $50.08 implies a 27.2% potential upside.
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