On Jul 4, 2013, Zacks Investment Research upgraded
) to a Zacks Rank #1 (Strong Buy) shortly after this consumer
fitness products provider was added to the prestigious Russell
Global and Russell 2000 Indexes.
The share price of the stock has been on the rise since this
announcement on Jul 1, gaining 4.7% in just 2 days.
Why the Upgrade?
Nautilus outperformed the Zacks Consensus Estimate in the last
four quarters with an average surprise of 156.5%. The stock has
provided a stellar one-year return of 169.6%. In fact, this
consumer fitness products company turned around from a loss
making entity to deliver profits in less than last four quarters.
This aggressive growth earned Nautilus a place in the Russell
Solid First Quarter Results
On May 6, Nautilus's first-quarter adjusted earnings of 18
cents per share breezed past the Zacks Consensus Estimate by
50.0% and year-ago results by 100.0%. The company's net sales
surged 15.5% to $51.3 million. In particular, the Direct segment
experienced solid revenue growth, thanks to increased demand for
Nautilus's cardio products.
Gross margin in the quarter improved 520 basis points to
51.8%, buoyed by higher margins in both Retail and Direct
businesses. Sustained shift of sales to higher margin cardio
products in the Direct channel has been benefiting Nautilus
immensely. Operating margin also improved 460 basis points to
10.1%, driven by efficient management of overheads.
Nautilus is expected to report its second-quarter earnings on
Aug 7, 2013. The Zacks Consensus Estimate for the upcoming
quarter is 2 cents, representing a massive year-over-year
increase of 183.3%. The company has a new lineup for cardio
products ready for shipment this fall. This category of products
is quite popular and is likely to boost company sales in the near
Estimates for full year 2013 and 2014 moved north over the
last 60 days, while none went south. The Zacks Consensus Estimate
for 2013 was up about 4.3% to 49 cents over the said time frame,
representing a year-over-year increase of 43.1% while the
estimate for 2014 moved up 1.6% to 64 cents indicating a
year-over-year improvement of 32.2%.
Other Stocks to Consider
Some other players, which attained Zacks Rank #1 (Strong Buy)
in this week include
Ruth's Hospitality Group Inc.
Brinker International Inc.
Krispy Kreme Doughnut Inc.
BRINKER INTL (EAT): Free Stock Analysis
KRISPY KREME (KKD): Free Stock Analysis
NAUTILUS INC (NLS): Free Stock Analysis
RUTHS HOSPITLTY (RUTH): Free Stock Analysis
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