Amer Sports beats Q2 revenue, adjusted EPS estimates; raises guidance

Overview

• Amer Sports Q2 revenue rises 23%, beating analysts' expectations, per LSEG data

• Adjusted EPS for Q2 beats estimates

• Co raises full-year revenue, margin, and EPS guidance

Outlook

• Amer Sports raises full-year revenue growth guidance to 20-21%

• Company expects full-year gross margin of approximately 57.5%

• Amer Sports sees third-quarter revenue growth of approximately 20%

• Company forecasts full-year EPS between $0.77 and $0.82

Result Drivers

• ARC’TERYX PERFORMANCE - Arc’teryx reported strong results across regions, channels, and categories, contributing significantly to revenue growth

• SALOMON FOOTWEAR - Salomon footwear saw a 35% growth in the Outdoor Performance segment, continuing its acceleration

• GOVERNMENT GRANTS - Adjusted operating profit increased 130% to $67 mln, aided by $19 mln in government grants, boosting the adjusted operating margin by 150 basis points

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 16 "strong buy" or "buy", 4 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the miscellaneous specialty retailers peer group is "buy"

• Wall Street's median 12-month price target for Amer Sports Inc is $43.00, about 12.8% above its August 18 closing price of $37.50

• The stock recently traded at 41 times the next 12-month earnings vs. a P/E of 32 three months ago

Press Release: ID:nBwK43Dja