SharkNinja, a maker of kitchen and household devices, on Thursday beat Wall Street's targets for the third quarter, but it guided below views for the holiday quarter. SharkNinja stock fell hard on the news.
The Needham, Mass.-based company earned an adjusted $1.21 a share on sales of $1.43 billion in the September quarter. Analysts polled by FactSet had expected earnings of $1.13 a share on sales of $1.31 billion. On a year-over-year basis, SharkNinja earnings rose 27% while sales increased 35%.
For the fourth quarter, the appliance maker forecast adjusted earnings of $1.21 a share on sales of $1.5 billion. That's based on the midpoint of its guidance. Analysts had been looking for Q4 earnings of $1.34 a share on sales of $1.58 billion, according to FactSet.
SharkNinja makes appliances for cooking, food preparation, cleaning, beauty and more. Its products range from air fryers and blenders to vacuum cleaners and hair dryers.
"As we enter the holiday season, we are pleased with the momentum in our business, despite the ongoing challenges in the global operating environment," Chief Executive Mark Barrocas said in a news release. "We remain confident in our ability to deliver sustainable long-term profitable growth as we capture increasing share in our large and growing addressable market."
SharkNinja Stock Retreats After Q3 Report
On the stock market today, SharkNinja stock sank nearly 17% to 92.21, With the drop, SharkNinja stock fell below its 50-day moving average line, a key support level.
On Aug. 8, SharkNinja stock broke out of a flat base at a buy point of 80.81, according to IBD MarketSurge charts.
SharkNinja's cleaning appliances sales rose 19% to $527.5 million in the third quarter, driven by the carpet extractor and cordless vacuums sub-categories.
Cooking and beverage appliances sales climbed 22% to $411.5 million. Growth in Europe and continued momentum within heated cooking fueled sales in the category.
Food preparation appliances revenue increased 75% to $366.8 million, driven by strong sales of ice cream makers and the launch of frozen drink appliances.
SharkNinja's other products category posted a 79% sales increase to $120.8 million, thanks to hair-care products and air purifiers.
Chief Executive Touts New Products
In an interview with IBD, Barrocas defended the company's Q3 report.
"We had a great quarter," he said. "We grew our top line 35% and our bottom line 26%. I don't know that there's many companies in the consumer space that are touching these kinds of numbers."
He added, "We're still expecting strong, double-digit growth in Q4."
SharkNinja's Q4 guidance translates to year-over-year growth of 29% in earnings and 9% in sales.
William Blair analyst Phillip Blee called SharkNinja's fourth-quarter guidance "conservative." He rates SharkNinja stock as outperform, or buy.
SharkNinja expects its hot gifts for the holiday season to include the Ninja Crispi portable air fryer cooker, Ninja Luxe Café at-home espresso and coffee maker, Ninja Slushi frozen drink maker and Ninja Creami ice cream maker.
SharkNinja stock is on two IBD lists: Stock Spotlight and Leaderboard.
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