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Nautilus (NLS) to Report Q1 Earnings: What's in the Cards?

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Nautilus is set to report first-quarter 2020 results on May 5.

For the quarter, the Zacks Consensus Estimate for loss has narrowed from 21 cents per share to 7 cents over the past 30 days. The company reported loss of 29 cents in the year-ago quarter.

The consensus mark for revenues is pegged at $93.7 million, implying an 11% rise from the year-ago quarter’s reported figure.

Notably, the company’s earnings beat the Zacks Consensus Estimate in one of the trailing four quarters, missing the same in the rest, the average negative surprise being 264.3%.
 

Nautilus Group, Inc. (The) Price and EPS Surprise

Nautilus Group, Inc. (The) Price and EPS Surprise

Nautilus Group, Inc. (The) price-eps-surprise | Nautilus Group, Inc. (The) Quote

 

Let’s see how things are shaping up for this announcement.

Solid Preliminary Q1 Results

Nautilus announced preliminary first-quarter results on Apr 8. Net sales of the home-fitness equipment provider increased 11% year over year to roughly $94 million, driven by robust sales of Bowflex and Schwinn brands.

Direct segment sales inched up 1% year over year to $47 million, backed by strong sales performance of Bowflex SelectTech dumbbells and kettlebells, and the Bowflex C6 and Schwinn IC4 bikes.

Moreover, Retail net sales were roughly $46 million, up 24% year over year. Strong sales of Bowflex and Schwinn home fitness products drove the top line.

Further, Nautilus expects EBITDA from continuing operations between break-even and $1.5 million.

Additionally, as of Mar 31, 2020, Nautilus had cash and cash equivalents worth $26.5 million and debt of $28 million compared with cash and cash equivalents of $11.1 million and debt of $14.1 million as of Dec 31, 2019. The company had $19.3 million available for borrowing on its line of credit as of Mar 31, 2020.

Key Factors to Watch

Nautilus’ first-quarter top-line growth from the preliminary results indicated that the coronavirus-led lockdowns and shelter-in-place guidelines helped it sell more of its home-fitness equipment as gyms remain closed.

The company’s quarterly top line benefited from an expanding product portfolio and increased consumer spending on home-fitness equipment.

Although physical store closure since early March is expected to have dented quarterly sales, retail sales uptick per preliminary results confirms that Nautilus gained from a strong adoption of ecommerce and curbside pick-up formats.

What Our Model Says

Per the Zacks model, the combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that’s not the case here.

Nautilus has an Earnings ESP of 0.00% and a Zacks Rank #1. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Stocks to Consider

Here are some other companies worth considering as our model shows that these have the right combination of elements to beat on earnings this reporting cycle:

Wayfair (W - Free Report) has an Earnings ESP of +1.69% and a Zacks Rank of 1. You can see the complete list of today’s Zacks #1 Rank stocks here.

Shopify (SHOP - Free Report) has an Earnings ESP of +23.41% and is #2 Ranked.

Etsy (ETSY - Free Report) has an Earnings ESP of +18.31% and a Zacks Rank #2.


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