Post Earnings Coverage as Acushnet Net Income Soared 61%
Upcoming AWS Coverage on Dick's Sporting Goods Post-Earnings Results
LONDON, UK / ACCESSWIRE / June 2, 2017 / Active Wall St. announces its post-earnings coverage on Acushnet Holdings Corp. (NYSE: GOLF). The Company released its first quarter fiscal 2017 financial results on May 12, 2017. The Golf products Company reported a y-o-y decline in sales. Additionally, Acushnet Holdings declared dividend and provided guidance for FY17. Register with us now for your free membership at: http://www.activewallst.com/register/.
One of Acushnet Holdings' competitors within the Sporting Goods Stores space, Dick's Sporting Goods, Inc. (NYSE: DKS), reported on May 16, 2017, its sales and earnings results for Q1 which ended on April 29, 2017. AWS will be initiating a research report on Dick's Sporting Goods in the coming days.
Today, AWS is promoting its earnings coverage on GOLF; touching on DKS. Get our free coverage by signing up to: http://www.activewallst.com/register/.
Earnings Reviewed
For the three months ended March 31, 2017, Acushnet reported net sales of $433.62 million, down 1.4% y-o-y, or down 0.8% in constant currency compared to net sales of $439.94 million in Q1 2016.
For the reported quarter, the Company recorded a 2.9% increase in net sales of Titleist golf balls to $134.19 million as a result of strong demand for the new Pro V1 and Pro V1x balls launched in Q1 2017. Acushnet posted an 11.7% decrease in net sales of Titleist golf clubs at $101.94 million. The Company stated that the demand for the model 917 drivers and fairways was offset by lower sales of Vokey wedges, irons, and Japan-specific VG3 clubs that are each in their second year of their two year product cycle.
For Q1 2017, Acushnet posted a 7.2% increase in net sales of Titleist golf gear at $42.39 million as a result of strength in travel gear and Titleist gloves as well as the successful introduction of the new Players stand bags and new headwear. The Company recorded net sales of $142.24 in FootJoy golf wear, down 1.7%, primarily as a result of a decline in footwear partially offset by increases in apparel and gloves.
During Q1 2017, Acushnet's consolidated net sales in the United States decreased by 3.0% to $223.12 million, primarily as a result of the US off-course, retail channel being impacted by reduced store count compared with last year due to the retail disruption in 2016. Acushnet posted y-o-y gains of 0.3% in net sales in regions outside the United States, up 1.6% on a constant currency basis - Korea was up 24.1% to $49.88 million and EMEA was up 0.8%, to $68.01 million offset by Japan down 10.6% to $50.05 million.
Acushnet's adjusted EBITDA for Q1 2017 totaled $78.5 million, down 0.9% on y-o-y basis. The Company's adjusted EBITDA margin was 18.1% for the reported quarter versus 18.0% for the prior year period.
For Q1 2017, net income attributable to Acushnet Holdings Corp. totaled $38.1 million, up $14.4 million, compared to net sales of $23.66 million in Q1 2016 primarily due to lower interest expense and higher income from operations compared to the year ago same period.
Quarterly Cash Dividend
In the earnings press release, Acushnet's Board of Directors declared a quarterly cash dividend of $0.12 per share of its common stock. The dividend will be payable on June 16, 2017, to stockholders of record on June 02, 2017.
Outlook
For FY17, Acushnet is forecasting consolidated net sales to be in the range of $1.57 billion to $1.595 billion. The Company is predicting consolidated net sales on a constant currency basis to increase in the range of 1.8% to 3.7%. Acushnet's adjusted EBITDA is expected to be in the band of $220 million to $230 million in FY17.
Stock Performance
At the closing bell, on Thursday, June 01, 2017, Acushnet Holdings' stock rose slightly by 0.26%, ending the trading session at $19.05. A total volume of 178.38 thousand shares were traded at the end of the day. In the last month and previous three months, shares of the Company have advanced 4.96% and 7.75%, respectively. The stock is trading at a PE ratio of 19.32 and has a dividend yield of 2.52%. At Thursday's closing price, the stock's net capitalization stands at $1.40 billion.
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