The shares recently traded at $59.01, up 15%. They have climbed 69% year to date.
Profit registered $51.4 million, or 58 cents a share, more than double the $21.3 million, or 25 cents, of a year earlier. Adjusted earnings per share hit 61 cents, beating the FactSet analyst consensus of 37 cents.
The Austin company’s revenue totaled $294.6 million in the third quarter, up 29% from $229.1 million in the year-earlier quarter. The latest figure beat the FactSet analyst consensus of $262 million.
Baird analyst Peter Benedict called the earnings a “blowout performance,” with “impressive” results across the board, according to Bloomberg.
He likes that the company ended the quarter with $235 million of cash and zero net debt, thanks to free cash flow of about $160 million.
There’s an “upward bias to both estimates and valuation,” Benedict said. He rates the stock outperform with a price target of $60.
Stifel analyst Jim Duffy has a hold rating and a $48 price target. He too was impressed with the earnings report.
“Following 23% inventory declines exiting the second quarter, results suggest Yeti was able to chase inventory in the third quarter to better meet demand,” he wrote in a commentary cited by Bloomberg.
But inventories slid 36% year-on-year going into the fourth quarter, representing a “gaiting factor,” he said.
The “capacity to chase inventory during the fourth quarter” could suggest upside potential to Yeti’s earnings guidance, Duffy said.