Complete Earning analysis of good business: Johnson Outdoors Inc. (NASDAQ: JOUT)

On Friday, Johnson Outdoors Inc. (NASDAQ: JOUT) stock changed -5.89% to recent value of $59.29. There are 10M shares outstanding and 8M shares are floated in market.  JOUT over recent time; they noted that 38669 shares changed at hands contradiction to its average trading volume of 45.81K.

Johnson Outdoors Inc. (JOUT) recently reported higher sales and double-digit growth in net income during the Company’s seasonally slow first fiscal quarter ending December 27, 2019.

During the first fiscal quarter, the Company is ramping up for the primary selling period of its warm-weather outdoor recreation products across the second and third fiscal quarters. Total net sales in the first fiscal quarter increased 23 percent year over year to $128.1M, versus $104.4M in the previous year fiscal quarter. Key contributing factors to the results were:

  • A delay in Fishing’s new product availability in the previous year quarter accounted for much of the 26 percent increase in year-over-year sales in the unit.
  • In Diving, sales increased 6 percent due primarily to growth in Europe. On a constant currency basis, SCUBAPRO®sales were up 8 percent versus previous year.
  • Camping revenue advanced 29 percent Because of the growth in Jetboil®and Eureka!®
  • Solid performance of new products led to an 11 percent uptick in Watercraft Recreation sales.

Total Company operating profit was $6.8M for the first fiscal quarter versus $6.0M in the previous year first quarter.  The impact of favorable market conditions on the Company’s deferred compensation plan assets resulted in about $3.4M of higher deferred compensation expense, which was entirely offset by a gain in Other Income. Profit before income taxes increased to $8.6M, up $4.3M from the previous year’s first quarter.

Net income increased to $6.4M, or $0.64 per diluted share, versus $3.5M, or $0.35 per diluted share in the previous year’s first quarter. The Company’s effective tax rate was 25.1 percent contrast to an effective rate of 18.7 percent in the previous year first quarter.

The Company stated cash and short-term investments of $138.3M as of December 27, 2019. Depreciation and amortization were $3.4M contrast to $3.3M in the previous year’s quarter. Capital spending totaled $3.3M in the current quarter contrast with $4.1M in the previous year quarter. In December 2019, the Company’s Board of Directors accepted a quarterly cash dividend to shareholders of record as of January 9, 2020, which was payable on January 23, 2020.

“First quarter results are not predictive of the full year, and we continue to expect moderate sales growth for the full fiscal year. As a result of recent developments in trade negotiations between the United States and China, as well as our own mitigation efforts, we now expect the impact of tariffs on Chinese goods and components to be about $4 – 5M on fiscal 2020 profits,” stated David W. Johnson, Chief Financial Officer. “Importantly, our strong balance sheet provides us the financial capacity and flexibility to plannedally invest in growing our business while continuing to enhance long-term value for shareholders.”

Simple Moving Average:

The stock disclosed a move of -11.70% away from 50 day moving average and -10.62% away from 200 day moving average. Moving closer, we can see that shares have been trading 2.63% away off 20-day moving average.

JOUT ’s shares are at -21.89% for the quarter and driving a -15.90% return over the course of the past year and is now at -22.70% since this point in 2019. The average volatility for the week and month was at 13.32% and -5.36% respectively.

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