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Results: Johnson Outdoors Inc. Exceeded Expectations And The Consensus Has Updated Its Estimates

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  • JOUT

Johnson Outdoors Inc. (NASDAQ:JOUT) just released its latest third-quarter results and things are looking bullish. It was overall a positive result, with revenues beating expectations by 7.5% to hit US$214m. Johnson Outdoors reported statutory earnings per share (EPS) US$2.83, which was a notable 13% above what the analyst had forecast. The analyst typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. With this in mind, we've gathered the latest statutory forecasts to see what the analyst is expecting for next year.

View our latest analysis for Johnson Outdoors

earnings-and-revenue-growth
earnings-and-revenue-growth

Taking into account the latest results, Johnson Outdoors' sole analyst currently expect revenues in 2022 to be US$760.3m, approximately in line with the last 12 months. Statutory earnings per share are expected to reduce 8.4% to US$8.37 in the same period. Yet prior to the latest earnings, the analyst had been anticipated revenues of US$741.9m and earnings per share (EPS) of US$8.40 in 2022. So it looks like there's been no major change in sentiment following the latest results, although the analyst has made a small lift in to revenue forecasts.

The consensus price target increased 7.1% to US$180, with an improved revenue forecast carrying the promise of a more valuable business, in time.

Of course, another way to look at these forecasts is to place them into context against the industry itself. We would highlight that Johnson Outdoors' revenue growth is expected to slow, with the forecast 1.1% annualised growth rate until the end of 2022 being well below the historical 8.5% p.a. growth over the last five years. Compare this against other companies (with analyst forecasts) in the industry, which are in aggregate expected to see revenue growth of 11% annually. Factoring in the forecast slowdown in growth, it seems obvious that Johnson Outdoors is also expected to grow slower than other industry participants.

The Bottom Line

The most important thing to take away is that there's been no major change in sentiment, with the analyst reconfirming that the business is performing in line with their previous earnings per share estimates. Fortunately, they also upgraded their revenue estimates, although our data indicates sales are expected to perform worse than the wider industry. There was also a nice increase in the price target, with the analyst clearly feeling that the intrinsic value of the business is improving.

With that in mind, we wouldn't be too quick to come to a conclusion on Johnson Outdoors. Long-term earnings power is much more important than next year's profits. We have analyst estimates for Johnson Outdoors going out as far as 2023, and you can see them free on our platform here.

Don't forget that there may still be risks. For instance, we've identified 2 warning signs for Johnson Outdoors (1 makes us a bit uncomfortable) you should be aware of.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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