SharkNinja is the IBD Stock Of The Day as the maker of kitchen and household devices posts a big beat-and-raise earnings report. SharkNinja stock staged a breakout on the news.
Early Thursday, SharkNinja said it earned an adjusted 71 cents a share on sales of $1.25 billion in the second quarter. Analysts polled by FactSet had expected earnings of 60 cents a share on sales of $1.08 billion. On a year-over-year basis, SharkNinja earnings rose 51% while sales increased 38%.
For the full year, SharkNinja now expects adjusted net sales to increase 22% to 24% compared to its prior expectation of 12% to 14% growth. Analysts were looking for 15% growth this year.
SharkNinja forecast 2024 adjusted earnings per share of $4.05 to $4.21, reflecting a 26% to 31% increase. The midpoint of $4.13 topped the consensus estimate of $3.84.
SharkNinja makes small appliances for cooking, food preparation, cleaning, beauty and more.
SharkNinja Stock Breaks Out
Investors ate up SN stock after the opening bell. On the stock market today, SharkNinja stock rallied 17% to close at 85.36. In intraday trading, it notched a record high of 86.65.
With the move, SharkNinja stock broke out of a flat base at a buy point of 80.81, according to IBD MarketSurge charts. It also surged above its 50-day moving average line.
However, most breakouts during a stock market correction don't pan out. IBD trading guidelines recommend that investors go with a smaller position or put the stock on their watchlists. Also, the stock is a bit extended because the buy zone goes to 84.85.
William Blair analyst Phillip Blee described SharkNinja's report as "another blowout quarter." He rates SharkNinja stock as outperform.
"SharkNinja continues to buck the trend of softening consumer demand in discretionary categories, led by the company's focus on newness and innovation, which has clearly resonated with an increasingly value-oriented and selective consumer," Blee said in a client note.
SharkNinja stock ranks first out of 13 stocks in IBD's Household-Appliances and Wares industry group, according to IBD Stock Checkup. It has an IBD Composite Rating of 94 out of 99.
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