UPDATE: D.A. Davidson & Co. Reiterates On Nautilus Following New Product Success

Loading...
Loading...
In a report published Tuesday, D.A. Davidson & Co. analyst Andrew Burns reiterated a Buy rating on
NautilusNLS
, and raised the price target from $14.00 to $15.00. In the report, D.A. Davidson & Co. noted, “2Q yields impressive revenue and EPS upside. NLS reported revenue and EPS of $48.5 million and $0.05 from continuing operations (GAAP EPS: $0.02), compared to consensus at $42.8 million and $(0.01), and our estimates of $41.2 million and $(0.01). Total revenue grew 34% year-over-year (y/y). Retail segment revenue growth of 48% was driven by the benefit of the new MaxTrainer and ongoing TreadClimber growth; Direct-to-Consumer (DTC) grew 28% y/y driven by easy comparisons and healthy Schwinn cardio product growth. Gross margin increased 323bp to 51.0%, with both Retail (+490bp) and Direct (+410bp) improvements coming from favorable mix, product costs, and operating efficiencies. Operating expenses increased 17.6% to $22.4 million, or 46.1% of sales (vs. 52.6% in 2Q13). Inventory was up 74% y/y reflecting a planned inventory build ahead of the upcoming distribution facility opening and a supplier factory move.” Nautilus closed on Monday at $10.42.
Posted In: Analyst ColorPrice TargetAnalyst RatingsAndrew BurnsD.A. Davidson & Co.
Benzinga simplifies the market for smarter investing

Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.

Join Now: Free!

Loading...