Johnson Outdoors Inc. (NASDAQ:JOUT) is a key player in the outdoor recreation equipment and technology sector. The company is known for its innovative products that cater to outdoor enthusiasts. Despite its strong market presence, JOUT faces stiff competition and market challenges, which have impacted its financial performance. The company operates in the Zacks Leisure and Recreation Products industry, where it competes with other major brands.
On February 3, 2025, JOUT reported an earnings per share (EPS) of -$1.49, missing the estimated EPS of -$1.30. This represents a negative surprise of 14.62%, as highlighted by Zacks. The company has consistently failed to meet consensus EPS estimates over the past four quarters, indicating ongoing financial challenges. In the previous quarter, JOUT reported a loss of $3.35 per share, far exceeding the expected loss of $0.98.
Despite the earnings loss, JOUT's revenue for the quarter was $107.6 million, which exceeded the Zacks Consensus Estimate by 2.82%. However, this figure is a decline from the $138.64 million reported in the same quarter last year. The company has managed to surpass consensus revenue estimates twice in the last four quarters, showing some resilience in its revenue generation.
JOUT's financial ratios reflect its current challenges. The company has a negative price-to-earnings (P/E) ratio of -10.37, indicating negative earnings. Its price-to-sales ratio is 0.70, suggesting that the stock is valued at 70 cents for every dollar of sales. The enterprise value to sales ratio is 0.48, which may imply a relatively low valuation compared to its sales.
Despite these challenges, JOUT maintains a strong liquidity position with a current ratio of 4.23. This indicates the company's ability to cover its short-term liabilities with its short-term assets. Helen Johnson-Leipold, Chairman and CEO, emphasizes the company's commitment to strategic priorities aimed at future growth, including investing in consumer-driven innovation and enhancing operational efficiencies.
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