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Category: Nvidia (NVDA) and Softbank
Date: 14 September 2020 Stock price of Apple: $486.58 We take a look at the 4th quarter 2020 earnings report of Johnson Outdoors (JOUT). The company designs, manufactures and markets a portfolio of winning, consumer-preferred brands across four categories: Watercraft Recreation, Fishing, Diving and Camping. For the 4th quarter they reported $164.6 million and net earnings of $15.5 million.
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The 2020 fiscal year was like no other year in our history. We started the year with a very strong first quarter, but the onset of the pandemic and the initial stay-at-home mandates cut short our momentum and significantly impacted our second and third quarters, the heart of our primary selling season. "
More About P
JOHNSON OUTDOORS is a leading global innovator of outdoor recreation equipment and technologies that inspire more people to experience the awe of the great outdoors. The company designs, manufactures and markets a portfolio of winning, consumer-preferred brands across four categories: Watercraft Recreation, Fishing, Diving and Camping. Johnson Outdoors' iconic brands include: Old Town® canoes and kayaks; Ocean Kayak ™; Carlisle® paddles; Minn Kota® fishing motors, batteries and anchors; Cannon® downriggers; Humminbird® marine electronics and charts; SCUBAPRO® dive equipment; Jetboil® outdoor cooking systems; and, Eureka!®camping and hiking equipment.
Overview of Johnson Outdoor's 4th quarter 2020 earnigns report
During the Company’s fourth quarter, the outdoor recreation industry is typically in ramp-down mode and sales are historically lower. Due to the impact of the COVID-19 outbreak, the Company experienced increased demand during the final months of fiscal 2020 as consumers continued to look for ways to recreate outdoors. As a result, each of our Fishing, Camping and Watercraft Recreation segments experienced strong demand in the latter half of the current fiscal year, and total Company net sales in the quarter increased 58 percent year over year to $164.7 million. Operating profit was $19.5 million in the current year fourth quarter versus $1.9 million in the prior year fourth quarter, due largely to increased sales. Net earnings for the fourth quarter were $15.5 million compared to $3.9 million in fiscal 2019. “Strong demand in Fishing, Camping and Watercraft Recreation continued into the fourth quarter, and the challenge has been keeping pace with demand. Ongoing travel restrictions continued to limit accessibility to destination diving, but the team has been working hard to put our Diving brand in a strong position for when travel returns,” said Johnson-Leipold. “Looking ahead, we believe the power of our innovation, the enduring strength of our brand equities and the diversity of our outdoor recreation portfolio continue to well-position Johnson Outdoors for the future.”
FISCAL 2020 HIGHLIGHTS
FISCAL 2020 RESULTS
Total Company revenue grew 6 percent to $594.2 million versus fiscal 2019 revenue of $562.4 million. The company’s fiscal year ending October 2, 2020, comprised of 53 weeks compared to 52 weeks in the prior fiscal year. The additional week in fiscal 2020 drove an increase in net sales of approximately 1.5 percent over the prior year. Additional key factors in the year-over-year comparison were:
Total Company operating profit was $71.1 million in fiscal 2020, which compared favorably to operating profit of $63.8 million in the prior fiscal year. Gross margins remained steady as improved cost absorption through higher volumes and a strong product mix helped offset a $1.0 million increase in tariff costs. Operating expenses increased $7.9 million versus the prior year due largely to volume-related expenses, but declined as a percentage of sales versus fiscal 2019. Net income for the fiscal year improved to $55.2 million, or $5.47 per diluted share, a 7 percent improvement versus $51.4 million, or $5.11 per diluted share, in the last fiscal year. The effective tax rate was 25.1 percent compared to the previous fiscal year’s rate of 22.7 percent.
FISCAL 2020 HIGHLIGHTS
- Significant consumer demand in Fishing, Camping and Watercraft Recreation
- Digital and ecommerce leveraged as consumer buying behavior changed
- New products command top industry awards
- Strong cash flow
- Increased quarterly dividend to shareholders
- Organizational agility amid COVID-19 impacts
FISCAL 2020 RESULTS
Total Company revenue grew 6 percent to $594.2 million versus fiscal 2019 revenue of $562.4 million. The company’s fiscal year ending October 2, 2020, comprised of 53 weeks compared to 52 weeks in the prior fiscal year. The additional week in fiscal 2020 drove an increase in net sales of approximately 1.5 percent over the prior year. Additional key factors in the year-over-year comparison were:
- Continued demand for new and legacy technologies in Minn Kota® and Humminbird® drove a 9 percent increase in Fishing revenue
- Strong demand across all product categories drove a 25 percent increase in Watercraft Recreation sales
- Camping grew 3 percent due to higher sales in both Jetboil® and Eureka®, offset in part by a decrease in military tent sales
- Pandemic-related global travel restrictions negatively impacted Diving revenue by 20 percent
Total Company operating profit was $71.1 million in fiscal 2020, which compared favorably to operating profit of $63.8 million in the prior fiscal year. Gross margins remained steady as improved cost absorption through higher volumes and a strong product mix helped offset a $1.0 million increase in tariff costs. Operating expenses increased $7.9 million versus the prior year due largely to volume-related expenses, but declined as a percentage of sales versus fiscal 2019. Net income for the fiscal year improved to $55.2 million, or $5.47 per diluted share, a 7 percent improvement versus $51.4 million, or $5.11 per diluted share, in the last fiscal year. The effective tax rate was 25.1 percent compared to the previous fiscal year’s rate of 22.7 percent.
Johnson Outdoors management commentary on their 4th quarter 2020 earnings report
RACINE, Wis., Dec. 11, 2020 (GLOBE NEWSWIRE) -- Johnson Outdoors Inc. (Nasdaq:JOUT), a leading global innovator of outdoor recreation equipment and technology, today announced higher revenue and earnings for the 2020 fiscal year ending October 2, 2020. High demand for products in Fishing, Camping and Watercraft Recreation extended into the industry’s seasonally slow fiscal fourth quarter, driving higher sales and operating profit year-over-year for a strong finish to a challenging year.
“The 2020 fiscal year was like no other year in our history. We started the year with a very strong first quarter, but the onset of the pandemic and the initial stay-at-home mandates cut short our momentum and significantly impacted our second and third quarters, the heart of our primary selling season. As those mandates eased, we saw demand ramp up and participation grow in Fishing, Camping and Watercraft Recreation. This positive late-season momentum resulted in a strong finish to the year,” said Helen Johnson-Leipold, Chairman and Chief Executive Officer. “The great outdoors offers the experiences and recreational activities that can rejuvenate the mind, body and spirit, and most importantly, are safe to enjoy. With strict safety procedures and protocols in place, the hard work and dedication of our employees enabled us to respond to robust demand.”
“The 2020 fiscal year was like no other year in our history. We started the year with a very strong first quarter, but the onset of the pandemic and the initial stay-at-home mandates cut short our momentum and significantly impacted our second and third quarters, the heart of our primary selling season. As those mandates eased, we saw demand ramp up and participation grow in Fishing, Camping and Watercraft Recreation. This positive late-season momentum resulted in a strong finish to the year,” said Helen Johnson-Leipold, Chairman and Chief Executive Officer. “The great outdoors offers the experiences and recreational activities that can rejuvenate the mind, body and spirit, and most importantly, are safe to enjoy. With strict safety procedures and protocols in place, the hard work and dedication of our employees enabled us to respond to robust demand.”
Johnson Outdoors (JOUT) stock price history over the last 5 years
The image below, obtained from Google shows the stock price history of Johnson Outdoors (JOUT) for the last 5 years and it's been a pretty good time for Johnson Outdoors stockholders over the last 5 years. 5 years ago the stock was trading at $22.80 and its currently trading at $95.77 That's a very strong return of 320% provided to Johnson Outdoors stockholders over the last 5 years.
The stock of Johnson Outdoors is trading at a lot closer to its 52 week high than it is to its 52 week low which to us is a clear indication that the short term sentiment and momentum of The BrightView stock is very positive at this point in time.
The stock of Johnson Outdoors is trading at a lot closer to its 52 week high than it is to its 52 week low which to us is a clear indication that the short term sentiment and momentum of The BrightView stock is very positive at this point in time.
Johnson Outdoors (JOUT) stock price history over the last 5 years
Johnson Outdoors (JOUT) stock vs Sportsmans Warehouse (SPWH) stock over the last 3 years
The image below shows the stock price performance of Johnson Outdoors (JOUT) stock vs Sportsmans Warehouse (SPWH) stock over the last 3 years. The summary below shows the stock price performance of the two firms over the last 5 years.
The stock of Sportsmans Warehouse has easily outperformed that of Johnson Outdoors over the last 3 years
- Sportsmans Warehouse: 79.60%
- Johnson Outdoors: 49.1%
The stock of Sportsmans Warehouse has easily outperformed that of Johnson Outdoors over the last 3 years
Johnson Outdoors (JOUT) stock vs Sportsmans Warehouse (SPWH) stock over the last 3 years
Latest stock valuation of Johnson Outdoors (JOUT)
So what is Johnson Outdoors stock worth based on their 4th quarter 2020 earnings report? Based on their earnings report our valuation model provides a target price (full value price) for Johnson Outdoors at $91.20 a stock
We therefore believe the stock of Johnson Outdoors is overvalued at its current price of $95.77
We usually recommend long term fundamental or value investors look to enter a stock at least 10% below our target price (full value price), which in this case is $91.20, thus a good entry point into Johnson Outdoors would be at $82 or below.
We expect the stock of Johnson Outdoors to pull back slightly from current levels in coming weeks and months to levels closer to our target price (full value price). We rate the stock of Johnson Outdoor as a hold
We therefore believe the stock of Johnson Outdoors is overvalued at its current price of $95.77
We usually recommend long term fundamental or value investors look to enter a stock at least 10% below our target price (full value price), which in this case is $91.20, thus a good entry point into Johnson Outdoors would be at $82 or below.
We expect the stock of Johnson Outdoors to pull back slightly from current levels in coming weeks and months to levels closer to our target price (full value price). We rate the stock of Johnson Outdoor as a hold
Next earnings release of Johnson Outdoors (JOUT)
It is expected that Johnson Outdoors will release their 1st quarter 2021 earnings report in early March 2021
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