Core Viewpoint - The recent upgrade of Yeti to a Zacks Rank 1 (Strong Buy) indicates a positive outlook on its earnings, suggesting potential upward movement in its stock price [2][7][8]. Earnings Outlook - For the fiscal year ending December 2024, Yeti is expected to earn $2.60 per share, reflecting a 15.6% increase from the previous year [4]. - Over the past three months, the Zacks Consensus Estimate for Yeti has risen by 4.1%, indicating a trend of increasing earnings estimates [4]. Zacks Rating System - The Zacks rating system maintains a balanced approach, with only the top 5% of stocks receiving a 'Strong Buy' rating and the next 15% receiving a 'Buy' rating, highlighting the significance of earnings estimate revisions [5]. - The Zacks Rank stock-rating system has a strong track record, with Zacks Rank 1 stocks generating an average annual return of +25% since 1988 [12]. Impact of Earnings Estimates - Changes in earnings estimates are strongly correlated with near-term stock price movements, influenced by institutional investors who adjust their valuations based on these estimates [9][11]. - Rising earnings estimates for Yeti suggest an improvement in the company's underlying business, which could lead to increased investor interest and stock price appreciation [10].

Core Insights - The article compares Yeti (YETI) and Pool Corp. (POOL) to determine which stock is more attractive to value investors [1][3] Valuation Metrics - YETI has a Zacks Rank of 2 (Buy), indicating a stronger earnings outlook compared to POOL, which has a Zacks Rank of 5 (Strong Sell) [3] - YETI's forward P/E ratio is 14.02, significantly lower than POOL's forward P/E of 26.68, suggesting YETI is undervalued [5] - YETI's PEG ratio is 1, while POOL's PEG ratio is 2.15, indicating YETI's expected EPS growth is more favorable [5] - YETI has a P/B ratio of 4.78 compared to POOL's P/B of 8.44, further supporting YETI's valuation advantage [6] Value Grades - YETI holds a Value grade of B, while POOL has a Value grade of F, highlighting YETI's superior valuation metrics and earnings outlook [7]

Core Insights - YETI Holdings, Inc. reported Q1 2024 earnings that exceeded estimates and raised full-year guidance, despite the stock being down over 20% year-to-date [1] - The company is focusing on international growth, which has shown significant potential with a 30% increase in international sales, now representing 19% of total business [2][19] - New product launches, including a $200 hard cooler and cast iron cookware, are expected to drive future growth [8][23] Financial Performance - Q1 2024 revenue was approximately $341 million, a 13% increase compared to Q1 2023, with direct-to-consumer sales at $188 million (up 12%) and wholesale sales at $153 million (up 13%) [15][19] - Gross profit for the quarter was $104.8 million, with net income of $15.9 million, reflecting growth from the previous year [24][25] - The company increased its gross margin estimate to 58% and adjusted operating margin to between 16% and 16.5% [25] International Expansion - YETI's management emphasized international growth as a top priority, with plans to build commercial organizations tailored to different regions [2] - The company has seen international sales grow by over 30% year-over-year, indicating strong demand outside the U.S. [19][28] - New hires, such as Naoji Takeda as Managing Director for the region, are expected to enhance international market success [2] Product Development - Recent product launches include innovative drinkware items like stackable cups and French presses, which have contributed to stable revenue growth [3][23] - The introduction of a new line of cast iron cookware is anticipated to significantly impact growth, aligning with the company's strategy to expand its product offerings [8][23] - The company is also focusing on enhancing its cooler product line, with a new $200 cooler aimed at capturing a broader market segment [32] Valuation and Market Position - YETI's trailing P/E ratio was reported at 19.59, with an estimated intrinsic value of approximately $44 per share [6][20] - The company maintains a healthy balance sheet, with sufficient current assets to cover liabilities despite a decrease in cash balance due to acquisitions and stock repurchases [31] - The valuation grade for YETI is currently a "C-", indicating room for improvement compared to sector peers [11][30]

YETI Holdings, Inc. (NYSE:YETI) Q1 2024 Earnings Conference Call May 9, 2024 8:00 AM ET Company Participants Thomas Shaw - Vice President of Investor Relations Matthew Reintjes - President & Chief Executive Officer Michael McMullen - Senior Vice President, Chief Financial Officer & Treasurer Conference Call Participants Randy Konik - Jefferies Anna Glaessgen - B. Riley Peter Benedict - Robert W. Baird John Kernan - TD Cowen Peter Keith - Piper Sandler Brooke Roach - Goldman Sachs Operator Good day and welco ...

The premium brand's profits are going up.Shares of cooler and insulated drinkware maker Yeti Holdings (YETI 11.15%) jumped higher on Thursday after the company reported stronger-than-expected financial results for the first quarter. As of 11:15 a.m. ET, Yeti stock was up 12% today.Encouraging margin expansionFor the first quarter, Yeti generated net sales of $341 million, up 13% year over year. The company showed growth across product categories, sales channels, and geographic regions -- everything came in ...

Yeti (YETI) reported $341.39 million in revenue for the quarter ended March 2024, representing a year-over-year increase of 12.8%. EPS of $0.34 for the same period compares to $0.18 a year ago.The reported revenue compares to the Zacks Consensus Estimate of $333.79 million, representing a surprise of +2.28%. The company delivered an EPS surprise of +36.00%, with the consensus EPS estimate being $0.25.While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street ...

Yeti (YETI) came out with quarterly earnings of $0.34 per share, beating the Zacks Consensus Estimate of $0.25 per share. This compares to earnings of $0.18 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 36%. A quarter ago, it was expected that this maker of outdoor and recreational products would post earnings of $0.96 per share when it actually produced earnings of $0.90, delivering a surprise of -6.25%.Over the last four q ...

Financial Performance - Net sales increased 13% to $341.4 million, compared to $302.8 million in the same period last year[5] - Gross profit increased 20% to $194.8 million, with a gross margin of 57.1%, up from 53.5% in Q1 2023[6] - Adjusted EPS increased 89% to $0.34, while net income per diluted share rose 50% to $0.18[11][12] - Adjusted operating income increased 82% to $39.6 million, representing 11.6% of adjusted sales[11] - Operating income rose to $25,817,000, a 70.9% increase compared to $15,098,000 in the prior year[27][38] - Net income for the quarter was $15,855,000, up 50.3% from $10,564,000 in the same quarter last year, with diluted earnings per share of $0.18[27][38] - Adjusted net income for the quarter was $29,320,000, compared to $15,531,000 in the same period last year, indicating strong operational performance[38] Sales Growth - Direct-to-consumer sales increased 12% to $187.8 million, and wholesale sales increased 13% to $153.6 million[7] - International net sales surged 32%, while U.S. net sales grew by 9%[6] - The company reported a 9% increase in U.S. net sales, totaling $275.796 million, compared to $252.986 million in the prior year[42] - International net sales increased by 31.8%, reaching $65.598 million, up from $49.810 million year-over-year[42] - The drinkware category generated $214.580 million in sales, a 12.7% increase from $190.287 million in the previous year[42] Future Projections - For Fiscal 2024, adjusted sales are expected to increase between 7% and 9%, with adjusted net income per diluted share projected between $2.49 and $2.62[16] - Adjusted net sales for fiscal 2024 are projected to be between $1.798 billion and $1.832 billion, compared to $1.680 billion in fiscal 2023[45] - Adjusted operating income for fiscal 2024 is expected to range from $287.687 million to $302.222 million, reflecting an increase from $262.785 million in fiscal 2023[45] - Adjusted net income for fiscal 2024 is forecasted to be between $214.512 million and $225.366 million, up from $196.987 million in fiscal 2023[45] - Adjusted operating income as a percentage of adjusted net sales is projected to be between 16.0% and 16.5% for fiscal 2024, compared to 15.6% in fiscal 2023[45] Expenses and Liabilities - SG&A expenses rose 15% to $169.0 million, accounting for 49.5% of sales, up from 48.5% in the prior year[9] - Total current assets decreased to $703,185,000 from $914,405,000 at the end of December 2023, primarily due to a reduction in cash[29] - Cash and cash equivalents at the end of the period were $173,911,000, down from $438,960,000 at the beginning of the quarter[30] - Total liabilities decreased to $472,905,000 from $573,582,000 at the end of December 2023, reflecting improved financial health[29] Inventory and Share Repurchase - The company reported a significant increase in inventory to $363,919,000 from $337,208,000, suggesting a strategic buildup for future sales[29] - The company entered into a $100 million accelerated share repurchase agreement, completing the repurchase of approximately 2.6 million shares[17] - The weighted average shares outstanding for diluted earnings per share is expected to be 86,105 for fiscal 2024, down from 87,403 in fiscal 2023[45] Adjustments and Recalls - The company incurred $21.700 million in product recall adjustments for the twelve months ended December 30, 2023[48]

Wall Street analysts forecast that Yeti (YETI) will report quarterly earnings of $0.25 per share in its upcoming release, pointing to a year-over-year increase of 38.9%. It is anticipated that revenues will amount to $334 million, exhibiting an increase of 10.3% compared to the year-ago quarter.The consensus EPS estimate for the quarter has undergone an upward revision of 0.2% in the past 30 days, bringing it to its present level. This represents how the covering analysts, as a whole, have reassessed their ...

The Peter Lynch philosophy of “Buy what you know” is something I tell people all the time. What it means is, when you want to invest, you should invest in companies that make the products or deliver the services you use every day. From a psychological point, it can help you stay invested and interested in companies.However, sometimes those companies that you know and love are not rocking and rolling the way they used to. Sometimes, there’s an underlying shift in the core business that you may not be aware o ...