|
Related Topics
|
Category: Stock Market and Johnson Outdoors
Date: 9 December 2019 Stock Price: $78.17 We take a look at the 4th quarter earnings for the 2019 fiscal year for Johnson Outdoors, a leading supplier of outdoor recreational equipment focussing on fishing, diving and camping.
|
About Johnson Outdoors
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's 4th quarter 2019 earnings report
The numbers we are interested in (for the quarter):
- Net sales: $104.019 million (up from $91.132 million from the same quarter of the previous year)
- Sales increased by 14.14% over the last 12 months
- Cost of sales: $57.436 million (down from $51.611 million for the same quarter of the previous year)
- Cost of sales increased 11.4% over the last 12 months
- So margin expansions experienced by Johnson Outdoors as sales increased at a faster rate than that of their cost of sales
- Net income: $3.903 million (up from a loss of -$4.956 million for the same quarter of the previous year)
- Diluted earnings per share: $0.39 (up from a loss of -$0.49 for the same quarter of the previous year)
- PE ratio: 50 (assuming the earnings per share this quarter is repeated for all quarters of the fiscal year)
- Dividend declared: $0.17
- Dividend yield: 0.86%
- Diluted weighted-average shares outstanding: 10.029 million (up from 10.013 million for the same quarter of the previous year)
- Cash and cash equivalents: $172.382 million
- Cash and cash equivalents per share: $17.18
- Cash and cash equivalents makes up 21.9% of Johnson Outdoor's market capital
- Cash and cash equivalents makes up 39.4 % of Johnson Outdoor's total assets
- Trade receivable: $44.508 million
- Trade receivable makes up 10.19% of the Johnson Outdoor's total assets.
- Inventories: $94.298 million (up from $88.864 million for the same quarter of the previous year)
- Inventories makes up 21.6% of Johnson Outdoor's total assets
- Inventories grew by 6.1% over the last 12 months
- Stockholders equity in Johnson Outdoor's: $324.534 million
- Stockholders equity per share: $32.35
- Johnson Outdoors stock is trading at 2.41 times its stockholders equity per share which is within the expected range of between 2 and 4 times that most firms tend to trade at
Johnson Outdoors management commentary on their 4th quarter 2019 earnings report
RACINE, Wis., Dec. 06, 2019 (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 2019 fiscal year ending September 27, 2019. Continued favorable response to new products in Fishing extended into the industry’s seasonally slow fourth quarter driving significantly higher sales and operating profit year-over-year during the quarter.
FISCAL 2019 HIGHLIGHTS
Sustained momentum in Fishing Improved performance in Camping Enhanced digital and ecommerce capacity Effective tariff mitigation Stable gross margins Strong cash flow Increased quarterly dividend to shareholders “Performance this year reflects the value of our sustained focus and investment in delivering the best outdoor recreation experiences possible. Ensuring we are targeting the right consumer with the right product, at the right time, in the right way and at the right price are all critical factors behind continued success. As a result, Fishing has continued on its profitable growth trajectory. Ongoing investment in innovation and digital acceleration across all of our businesses will provide long-term sustainable growth in an increasingly competitive marketplace,” said Helen Johnson-Leipold, Chairman and Chief Executive Officer.
FISCAL 2019 HIGHLIGHTS
Sustained momentum in Fishing Improved performance in Camping Enhanced digital and ecommerce capacity Effective tariff mitigation Stable gross margins Strong cash flow Increased quarterly dividend to shareholders “Performance this year reflects the value of our sustained focus and investment in delivering the best outdoor recreation experiences possible. Ensuring we are targeting the right consumer with the right product, at the right time, in the right way and at the right price are all critical factors behind continued success. As a result, Fishing has continued on its profitable growth trajectory. Ongoing investment in innovation and digital acceleration across all of our businesses will provide long-term sustainable growth in an increasingly competitive marketplace,” said Helen Johnson-Leipold, Chairman and Chief Executive Officer.
“We’re pleased by the strong finish to the year, particularly with the performance of Fishing and Camping brands. Looking ahead, we continue to believe the power of our innovation, the enduring strength of our brand equities and the diversity of our outdoor recreation portfolio combine to well-position Johnson Outdoors for the future,” said Johnson-Leipold.
“Heading into fiscal 2020, we expect continued moderate sales growth. Tariffs are estimated to have a negative impact of $5.0 - $6.0 million on fiscal 2020 operating profit, which includes foreseeable mitigation efforts at this time. The balance sheet remains strong, and our healthy cash position enables us to continue to invest in future growth strategies and strategic plan priorities while continuing to enhance long-term value for shareholders,” said David W. Johnson, Chief Financial Officer
“Heading into fiscal 2020, we expect continued moderate sales growth. Tariffs are estimated to have a negative impact of $5.0 - $6.0 million on fiscal 2020 operating profit, which includes foreseeable mitigation efforts at this time. The balance sheet remains strong, and our healthy cash position enables us to continue to invest in future growth strategies and strategic plan priorities while continuing to enhance long-term value for shareholders,” said David W. Johnson, Chief Financial Officer
Johnson Outdoors (NASDAQ: JOUT) stock price history
The image below, obtained from Google, shows Johnson Outdoors stock price history for the last 5 years. And its been a very good time for Johnson Outdoors stockholders. 5 years ago the stock of Johnson Outdoors was trading at around $27.20 a stock and its currently trading at $78.17. Thats a very healthy return of 187.3% provided to Johnson Outdoors stockholders over the last 5 years
The stock of Johnson Outdoor is trading at a little closer to its 52 week high of $91.90 than it is to its 52 week low of $54.12 which to us is an indication that the short term sentiment and momentum of Johnson Outdoors is moderately positive
The stock of Johnson Outdoor is trading at a little closer to its 52 week high of $91.90 than it is to its 52 week low of $54.12 which to us is an indication that the short term sentiment and momentum of Johnson Outdoors is moderately positive
Recent coverage of Johnson Outdoors
The extract below covers the lastest regarding Johnson Outdoors as obtained from Zacks.com (note this article was published 29 August 2019)
Johnson Outdoors Inc. could be a stock to avoid from a technical perspective, as the firm is seeing unfavorable trends on the moving average crossover front. Recently, the 50 Day Moving Average for JOUT broke out below the 200 Day Simple Moving Average, suggesting short-term bearishness. This has already started to take place, as the stock has moved lower by 18.7% in the past four weeks. And with the recent moving average crossover, investors have to think that more unfavorable trading is ahead for JOUT stock.
If that wasn’t enough, JOUT isn’t looking too great from an earnings estimate revision perspective either. It appears as though many analysts have been reducing their earnings expectations for the stock lately, which is usually not a good sign of things to come. Consider that in the last 30 days, 1 estimate has been reduced, while none has moved higher. Add this in to a similar move lower in the consensus estimate, and there is plenty of reason to be bearish here. That is why we currently have a Zacks Rank #4 (Sell) on this stock and are looking for it to underperform in the weeks ahead. So, either avoid this stock or consider jumping ship until the estimates and technical factors turn around for JOUT.
Read the full article here
Johnson Outdoors Inc. could be a stock to avoid from a technical perspective, as the firm is seeing unfavorable trends on the moving average crossover front. Recently, the 50 Day Moving Average for JOUT broke out below the 200 Day Simple Moving Average, suggesting short-term bearishness. This has already started to take place, as the stock has moved lower by 18.7% in the past four weeks. And with the recent moving average crossover, investors have to think that more unfavorable trading is ahead for JOUT stock.
If that wasn’t enough, JOUT isn’t looking too great from an earnings estimate revision perspective either. It appears as though many analysts have been reducing their earnings expectations for the stock lately, which is usually not a good sign of things to come. Consider that in the last 30 days, 1 estimate has been reduced, while none has moved higher. Add this in to a similar move lower in the consensus estimate, and there is plenty of reason to be bearish here. That is why we currently have a Zacks Rank #4 (Sell) on this stock and are looking for it to underperform in the weeks ahead. So, either avoid this stock or consider jumping ship until the estimates and technical factors turn around for JOUT.
Read the full article here
Johnson Outdoors (NASDAQ: JOUT) latest stock valuation
o based on Johnson Outdoors latest earnings report and financial guidance provided what is our target price for Johnson Outdoors stock? Our valuation models provide a target price (full value price) for Johnson Outdoors stock at $81.70 a stock.
We therefore believe the stock of Johnson Outdoors is close to being fully valued.
We usually recommend that long term fundamental and value investors look to enter the stock at around 10% below our target (full value) price of $81.70 a stock. So a good entry point into the stock of Johnson Outdoors would be at $73.50 or below. We therefore expect the stock of Johnson Outdoors to trade in a narrow range around our target price in coming weeks and months.
We therefore believe the stock of Johnson Outdoors is close to being fully valued.
We usually recommend that long term fundamental and value investors look to enter the stock at around 10% below our target (full value) price of $81.70 a stock. So a good entry point into the stock of Johnson Outdoors would be at $73.50 or below. We therefore expect the stock of Johnson Outdoors to trade in a narrow range around our target price in coming weeks and months.
Next earnings release of Johnson Outdoors
It is expected that Johnson Outdoors will release their 1st quarter 2020 earnings report in early March 2020