Kitchen and home appliance maker SharkNinja is the IBD Stock Of The Day for Wednesday. SN stock is trading above a buy point after a major run-up following its initial public offering last summer.
SharkNinja is off to an electric start since launching on the New York Stock Exchange at the end of July following its IPO and spinout from Hong Kong-based private equity firm JS Global.
The Needham, Mass.-based company – known for its air fryers, blenders and vacuum cleaners — averaged more than 50% earnings growth over the last three quarters while sales increases averaged 17%.
Coming off its Feb. 15 Q4 earnings beat, SharkNinja saw EPS increase 74% to 94 cents adjusted while sales rose 17% to $1.38 billion. FactSet analysts expected earnings of 87 cents per share on $1.31 billion in revenue.
Every Living Room, Bedroom, Kitchen And Backyard
Cooking and beverage appliance sales rose 31.5% to $502.6 million in the December quarter. Food preparation appliance sales increased 11% to $180.9 million. However, cleaning appliance sales fell 6.7% to $541.5 million, driven by softness in both corded and cordless vacuums.
Full-year net sales increased 14.4% to $4.25 billion, ahead of Wall Street views of $4.1 billion. Fiscal 2023 earnings increased 35.3% to $3.22 per share adjusted, beating FactSet estimates of $3.15 per share.
Cleaning appliance sales for the year fell 5.8% to $1.82 billion, which was offset by a 33.7% jump in cooking and beverage appliance sales to $1.44 billion. Food preparation appliances rose nearly 11% to $653.6 million. Other net sales, including air purifiers and SharkNinja's beauty category, spiked 190% to $339 million, led by strength in hair care products and purifiers.
"Our brands have strong momentum heading into 2024, and we continue to introduce new products, enter new categories, and grow our international footprint," CEO Mark Barrocas said in the earnings report. "We are confident that our strategy positions us to reach every living room, bedroom, kitchen, and backyard while driving long-term returns for our stakeholders."
Meanwhile, SharkNinja plans to expand further into the outdoor cooking space by introducing indoor/outdoor cooling systems and premium coolers, which the company views as $1 billion subcategories.
For 2024, SharkNinja guided a 7%-12% earnings increase to a range of $3.45 to $3.61 per share adjusted, on 5%-7% net sales growth. Wall Street anticipates 2024 earnings of $3.53 per share on 6.4% revenue growth to $4.53 billion.
SharkNinja Stock
SN stock cleared a 53.40 buy point for a flat base on Feb. 15 after earnings. Shares hit a record high of 54.26 late last week before easing but remain in a buy range, which extends to 56.07.
SN stock has rallied 108% from its all-time low of 25.84 from August 2023, following its IPO.
SharkNinja leads the Household-Appliances/Wares Group, according to IBD Stock Checkup.
SN stock has an 86 Composite Rating out of a best-possible 99. The Composite Rating combines various technical indicators into one easy-to-read score. SharkNinja has a 90 EPS Rating. The stock's relative strength line is trending to September highs with an 87 RS Rating.
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