NEW YORK (TheStreet) -- Nautilus (NLS) shares are up 10.1% to $9.75 on Tuesday following the release of the company's first quarter earnings results.
The company reported a 21% jump in net sales over the previous year quarter to $71.9 million, beating analysts revenue estimates of $65.2 million.
The consumer fitness products manufacturer posted net income of $5.7 million, or 18 cents per diluted share, beating analysts consensus estimates by 2 cents.
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TheStreet Ratings team rates NAUTILUS INC as a Buy with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation:
"We rate NAUTILUS INC (NLS) a BUY. This is driven by a few notable strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures, notable return on equity, attractive valuation levels and solid stock price performance. We feel these strengths outweigh the fact that the company has had sub par growth in net income."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- The revenue growth came in higher than the industry average of 4.3%. Since the same quarter one year prior, revenues rose by 18.5%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
- NLS has no debt to speak of therefore resulting in a debt-to-equity ratio of zero, which we consider to be a relatively favorable sign. Along with the favorable debt-to-equity ratio, the company maintains an adequate quick ratio of 1.39, which illustrates the ability to avoid short-term cash problems.
- The company's current return on equity greatly increased when compared to its ROE from the same quarter one year prior. This is a signal of significant strength within the corporation. When compared to other companies in the Leisure Equipment & Products industry and the overall market, NAUTILUS INC's return on equity exceeds that of the industry average and significantly exceeds that of the S&P 500.
- Investors have apparently begun to recognize positive factors similar to those we have mentioned in this report, including earnings growth. This has helped drive up the company's shares by a sharp 27.19% over the past year, a rise that has exceeded that of the S&P 500 Index. Regarding the stock's future course, although almost any stock can fall in a broad market decline, NLS should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
- You can view the full analysis from the report here: NLS Ratings Report