Many investors may not know the name Amer Sports (NYSE: AS), but they likely know the company’s famous brands. Amer Sports owns iconic sports and outdoor brands including Wilson tennis rackets and footballs, Atomic and Salomon ski equipment, and Louisville Slugger baseball bats.
The company may become more of a household name if it keeps up the performance it announced in the second-quarter report it released today. Strong financial performance led the company to update is full-year 2024 guidance, and investors pushed the stock higher by as much as 15.5% in response. As of 2:10 p.m. ET, the stock was still up by 9.9%. Amer Sports shares have now gained about 24% in just the past month.
Raising the financial bar
Investors may have been anticipating a good quarter, leading to the recent rally in Amer Sports shares. The company didn’t disappoint as it updated 2024 full-year guidance for the second time this year. Momentum in the business is being driven by its technical apparel brands. Revenue in that segment surged by 45% in 2023. It is on track to overtake the outdoor performance segment as the largest in the company in 2024.
Management now expects technical apparel — led by its flagship Arc’teryx brand — to grow revenue by more than 30% in this year. That’s the second boost it has given the estimate since it initially projected about 20% growth for 2024.
The company has also been raising full-year earnings-per-share guidance for the year. After two consecutive years of negative net income, Amer Sports now expects earnings at a midpoint of $0.42 per share for the year. With several of its brands performing well, investors are looking to put past losses in the rearview mirror and are jumping into Amer Sports today.
Should you invest $1,000 in Amer Sports right now?
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Howard Smith has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
Why Amer Sports Stock Scored Today was originally published by The Motley Fool