Yeti Holdings (YETI), a company that sells coolers, drinkware and other outdoor supplies, reported better-than-expected first-quarter earnings before the stock market open Thursday. In the premarket, Yeti stock fell after initially spiking toward record highs.
Estimates: Wall Street expected Yeti earnings of three cents per share, with revenue coming in at $143 million. Yeti Holdings went public in October.
Results: Yeti earnings came in at 8 cents a share. Revenue climbed 15% to $155.35 million.
Outlook: Yeti Holdings now sees adjusted EPS of $1.02-$1.06 vs. a prior goal of 99 cents to $1.04. Analysts had forecast $1.04, though that was before Yeti’s 5-cent beat in Q1. Yeti reaffirmed guidance for 11.5%-13% revenue growth.
Shares fell 2,7% to 33 after initially topping 36 in premarket trading on the stock market today. Yeti stock cleared a first-stage cup with handle base at 19.30 on Feb. 14. Shares fell nearly 5% on Wednesday after hitting a record 36.60 on Tuesday.
Yeti stock came public at 18 a share.
Yeti’s Composite Rating is 87 out of a best-possible 99. The EPS Rating of Yeti stock is 98, indicating accelerating profitability. The stock’s relative strength line, which gauges its performance against the S&P 500, is also up.
Yeti Holdings sells its upscale coolers, drink containers and other products in the U.S., Canada, Japan and Australia. Yeti’s products appear in retailers like Dick’s Sporting Goods (DKS), its largest customer last year, and Ace Hardware, as well as on Amazon (AMZN).
Dick’s Sporting Goods made up around 16% of Yeti’s gross sales during Yeti’s last fiscal year, Yeti’s annual report said. The Amazon Marketplace accounted for around 10% of gross sales over that time.
Threats To Yeti Stock, Earnings
But even as it tries to expand, it faces competition from the likes of well-established companies like Igloo and Coleman, the company warned in its annual report.
“The outdoor and recreation market is highly fragmented and highly competitive, with low barriers to entry,” the company said in the report. The company also warned said that rivals “will likely continue to attempt to imitate our products and technology.”
William Blair analyst Sharon Zackfia, in a research note last week, said Yeti was making strides in gaining recognition.
“Overall, we believe Yeti continued to make significant progress in bolstering brand awareness across regions and product categories on the heels of its first national advertising campaign in the fourth quarter last year,” she wrote.
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