Investing in companies in their first year of being publicly traded can be an exciting and perilous proposition. It may take time for enough information to come out about a new stock before the market can gather a strong sense of its actual value, leading to volatility. Shares can see large upticks as well as large declines as investors fill in the picture around the company more and more. Below, I’ll detail three stocks that have been on the right side of this equation, rewarding those who got in early. Ge ...

Investment Rating - 6-month rating: Buy (maintained) [2] Core Views - The company reported strong FY24Q3 results with revenue of $1.354 billion, up 17% YoY at comparable exchange rates, and adjusted net profit of $71 million, up 651% YoY [2] - FY24Q1-3 revenue reached $3.55 billion, up 15% YoY [2] - All brands and regions performed strongly, with Arc'teryx leading the growth and profitability in the global sports and outdoor market [2] - The company raised its FY24 revenue guidance to 16-17% YoY growth (previously 15-17%) and expects low-to-mid double-digit growth in FY25 [2][4] Business Segments - Functional Apparel (Arc'teryx etc): Revenue of $520 million in FY24Q3, up 33% YoY, with segment OPM of 20%, up 3.7pct YoY [2][3] - Outdoor (Salomon etc): Revenue of $534 million in FY24Q3, up 7% YoY, with segment OPM of 17.5%, down 0.4pct YoY [2][3] - Ball & Racquet Sports: Revenue of $300 million in FY24Q3, up 11% YoY, with segment OPM of 6.9%, up 6pct YoY [2][3] Regional Performance - Greater China: Revenue of $313 million in FY24Q3, up 56% YoY [3] - Asia-Pacific (ex-Greater China): Revenue of $125 million in FY24Q3, up 47% YoY [3] - Americas: Revenue of $488 million in FY24Q3, up 7% YoY [3] - EMEA: Revenue of $429 million in FY24Q3, up 4% YoY [3] Channel Performance - DTC: Revenue of $480 million in FY24Q3, up 41% YoY [3] - Wholesale: Revenue of $874 million in FY24Q3, up 8% YoY [3] Financial Metrics - Adjusted gross margin: 55.5% in FY24Q3, up 4.1pct YoY [3] - Adjusted operating margin: 14.4% in FY24Q3, up 2.8pct YoY [3] - Cash and equivalents: $312 million as of September 30, 2024 [3] Store Expansion - Functional Apparel: 212 directly operated stores as of September 30, 2024, up 33 YoY [3] - Outdoor: 196 directly operated stores as of September 30, 2024, up 80 YoY [3] - Ball & Racquet Sports: 45 directly operated stores as of September 30, 2024, up 36 YoY [3] FY24 Guidance - Revenue growth: 16-17% YoY (previously 15-17%) [4] - OPM: 10.5%-11% (high end) [4] - Gross margin: 55.3%-55.5% (previously 54.5%) [4] - Functional Apparel: Revenue growth over 34% (previously 30%), segment OPM slightly above 20% [4] - Outdoor: Revenue growth around 8%, segment OPM high single-digit [4] - Ball & Racquet Sports: Revenue growth of 4%, segment OPM low-to-mid single-digit [4] FY25 Outlook - Low-to-mid double-digit revenue growth [4] - Annual adjusted OPM growth of 30-70 basis points driven by gross margin expansion [4] Company Overview - Amer Sports is a global iconic sports and outdoor brand group with brands like Arc'teryx, Salomon, Wilson, Peak Performance, Atomic, and Armada [5] - The company is known for its craftsmanship, originality, and premium market positioning [5] - It creates high-performance apparel, footwear, and equipment for elite athletes and everyday consumers [5] Financial Projections - FY24-26 revenue: $5.1 billion, $5.8 billion, $6.7 billion [7] - FY24-26 net profit: $170 million, $320 million, $440 million [7] - FY24-26 EPS: $0.35, $0.66, $0.90 [7] - FY24-26 PE: 59X, 32X, 23X [7]

Investment Rating - The report assigns a positive investment rating to Amer Sports (AS), highlighting its strong financial performance and market expansion [2] Core Viewpoints - Amer Sports achieved significant financial results in Q3 2024, with EPS of $0.14, exceeding market expectations by $0.04, and revenue of $1.35 billion, surpassing expectations by $52.888 million [2] - Sales grew by 17% in Q3, driven by the flagship brand Arc'teryx, with an adjusted operating margin of 14.4%, well above the market expectation of 12.3% [2] - The company's performance in the Chinese market was particularly strong, with a 56% growth, and a 47% increase in the Asia-Pacific region (excluding China) [2] - Amer Sports raised its full-year revenue growth forecast to 16%-17%, with the Technical Apparel segment expected to grow by 34%, Outdoor Performance by 8%, and Ball & Racquet by 4% [5] - The company expects low to mid-double-digit annual revenue growth and a 30-70 basis point expansion in adjusted operating margin for 2025 [5] Financial Overview - Technical Apparel segment revenue increased by 34% to $520 million, driven by Arc'teryx, with an adjusted operating margin expanding by 370 basis points to 20% [2] - Outdoor Performance segment revenue grew by 8% to $534 million, primarily due to double-digit growth in Salomon footwear and apparel, though the adjusted operating margin decreased by 40 basis points to 17.5% [2] - Ball & Racquet segment revenue increased by 11% to $300 million, with an adjusted operating margin rising by 600 basis points to 6.9% [2] - Direct-to-consumer (DTC) sales grew by 41% year-over-year, while wholesale revenue increased by 8% to $870 million [2] Market Performance - In the EMEA region, revenue grew by 4% to $430 million, while the US market saw a 7% increase to $490 million [2] - Arc'teryx opened 9 new brand stores globally, bringing the total to 134 stores worldwide [2] - Salomon's footwear and apparel continued to show double-digit growth, with strong performance in Greater China and the Asia-Pacific region [2] Business Outlook - Amer Sports expects full-year adjusted EPS to be between $0.43 and $0.45, with an effective tax rate of approximately 37% and net financial costs estimated at $180-$190 million [5] - The company forecasts operating revenue of $5.122 billion for 2024, with a 17.3% year-over-year increase, and net profit of $153 million, a 173.1% increase from the previous year [7] - For 2025, operating revenue is projected to reach $5.825 billion, with a 13.7% increase, and net profit is expected to grow by 104% to $312 million [7]

Here are five stocks added to the Zacks Rank #1 (Strong Buy) List today:Astronics Corporation (ATRO) : This aerospace and defense company has seen the Zacks Consensus Estimate for its next year earnings increasing 1.7% over the last 60 days.Amer Sports, Inc. (AS) : This sportswear company has seen the Zacks Consensus Estimate for its current year earnings increasing 2.3% over the last 60 days.Brookfield Asset Management Ltd. (BAM) : This real estate investment company has seen the Zacks Consensus Estimate f ...

Amer Sports Inc. (NYSE:AS) Q3 2024 Earnings Conference Call November 19, 2024 8:00 AM ET Company Participants James Zheng - Chief Executive Officer Andrew Page - Chief Financial Officer Stuart Haselden - Chief Executive Officer, Arc’teryx Omar Saad - Vice President, Investor Relations Conference Call Participants Lorraine Hutchinson - Bank of America Jay Sole - UBS Matthew Boss - JP Morgan Kelly - Citi Laurent Vasilescu - BNP Paribas Michael Binetti - Evercore ISI Operator Hello everyone and welcome to Ame ...

Investment Rating - The report assigns an "Overweight" rating to Amer Sports (AS.N) [1][3] Core Views - Amer Sports, under Anta Group's leadership, is accelerating its development through a secondary listing, with Arc'teryx and the Chinese market as key growth drivers [2] - The company has made effective adjustments in channels, products, and management post-Anta acquisition, leveraging the resurgence of the outdoor industry [3] - Revenue CAGR from 2020-2023 was 21%, with net profit turning positive in 2024 [3] - The technical apparel segment, led by Arc'teryx, is the primary growth driver, with a 32.4% CAGR from 2020-2023 [3] - The DTC channel has grown significantly, increasing by 14 percentage points from 2020-2023, with 326 company-owned stores globally by the end of 2023 [3] Financial Summary - Revenue is projected to grow from $4.368 billion in 2023 to $6.453 billion in 2026, with a CAGR of 15.1% [4] - Net income is expected to increase from -$209 million in 2023 to $454 million in 2026 [4] - The PE ratio is forecasted to decline from 51 in 2024 to 22 in 2026, indicating improving profitability [4] Market Performance - The stock price ranged between $10.11 and $18.23 over the past 52 weeks, with a current price of $16.51 [5] - The company has a market capitalization of $8.111 billion with 489 million shares outstanding [5] Business Segments Technical Apparel - Revenue share increased from 28% in 2020 to 36% in 2023, driven by Arc'teryx's strong performance [3][24] - Arc'teryx accounts for 50% of revenue in Greater China, highlighting its importance in the region [3] Outdoor Sports - The segment contributed 38% of total revenue in 2023, with Salomon as the leading brand [3][30] - Salomon's revenue grew by 15.2% CAGR from 2020-2023, reaching $1.668 billion [30] Ball Sports - The segment accounted for 25% of revenue in 2023, with Wilson as the dominant brand [3][46] - Wilson's revenue grew by 18.3% CAGR from 2020-2023, reaching $1.108 billion [46] Geographic Performance - Revenue from Greater China grew by 61% in 2023, contributing 19% of total revenue [3][26] - EMEA and Americas remain core markets, contributing 33% and 40% of revenue respectively in 2023 [3][26] DTC Channel Growth - DTC channel revenue share increased from 21.7% in 2020 to 35.7% in 2023 [3][28] - The company plans to expand its DTC presence, particularly in Greater China, with a focus on Arc'teryx and Salomon [28] Management and Ownership - Anta Group holds a 56% stake in Amer Sports, maintaining its position as the largest shareholder [21] - The management team has extensive experience in the sports industry, with key executives from Adidas, Foot Locker, and Anta Group [20][21]

Amer Sports, Inc. (AS) has posted a remarkable 72.4% rally in the past three months, significantly outpacing the industry's 8.9% growth. Image Source: Zacks Investment Research As of Monday, the stock closed at $19.33, just below its 52-week high of $19.73 but well above its 52-week low of $10.11. The company also outperformed other industry players like American Outdoor Brands, Inc. (AOUT) , Academy Sports and Outdoors, Inc. (ASO) and Clarus Corporation (CLAR) , down 2.2%, 5.9% and 30%, respectively, in th ...

HELSINKI, Oct. 9, 2024 /PRNewswire/ -- Amer Sports, Inc. ("Amer Sports"), a global group of iconic sports and outdoor brands, announced today that its CEO James Zheng, along with other members of the Amer Sports management team, attended events with investors and research analysts in Shanghai, China on October 8, 2024 as part of the company's commitment to shareholder engagement. During the meeting, Mr. Zheng provided color on both the Company's long-term growth perspective for Greater China as well as an u ...

Investment Rating - Buy (Maintained) [1] Core Views - Amer Sports is a multi-brand sports group with the technical apparel segment leading revenue growth The company has maintained rapid revenue growth since 2020, with 2023 revenue reaching $4 368 billion and a CAGR of 21 3% from 2020 to 2023 The technical apparel segment grew at a CAGR of 32% and is expected to surpass the outdoor performance segment as the main revenue source [4] - The Chinese sports/outdoor market has significant growth potential, with room for penetration in lower-tier cities The global sportswear market reached $395 5 billion in 2023, with a 6 3% YoY growth, and is expected to maintain a growth rate above 6% from 2024 to 2028 The Greater China region is expected to lead in sportswear and footwear market growth with CAGRs of 9 0% and 8 8%, respectively, from 2022 to 2027 [4] - Arc'teryx has a relatively low penetration rate in the luxury consumer segment in China, with penetration rates of 14 2%-20 9% among luxury consumers, indicating significant future market potential [4] - Arc'teryx has developed a "sport-luxury" concept, while Salomon and Wilson have relatively late direct-to-consumer (DTC) expansion in China, targeting high-end commercial areas [4] Market Performance - Amer Sports' stock price has shown significant volatility over the past year, with a 12-month relative performance of 12 16%, underperforming the S&P 500's 28 57% [2] - As of September 19, 2024, Amer Sports' stock price was $15 03, with a 52-week range of $10 11-$18 23 The company has a market cap of $7 357 billion and an average daily trading volume of $21 35 million [3] Revenue and Profitability - Amer Sports' revenue has grown steadily, with a CAGR of 21 3% from 2020 to 2023 The technical apparel segment led the growth with a CAGR of 32%, while the outdoor performance and ball sports segments grew at 15% and 18%, respectively [25] - Despite high debt and interest expenses leading to consecutive years of net losses, the company's gross profit margin has improved, reaching 49 7% in 2023, placing it at the forefront of the industry [34] - The company's DTC channel revenue has grown rapidly, with offline DTC revenue increasing by 66% in 2023, driving overall revenue growth [75] Brand Performance - Arc'teryx and Salomon have shown strong performance, with Arc'teryx's revenue reaching $1 444 billion in 2023, a 52% YoY increase Salomon's revenue grew by 31% YoY in 2023, reaching $1 312 billion [31] - The ball sports segment's revenue growth has slowed, with a CAGR of 18% from 2020 to 2023, compared to the technical apparel segment's 32% growth [25] China Market Strategy - Arc'teryx has implemented a "sport-luxury" strategy in China, closing underperforming stores and focusing on larger, better-located stores to enhance customer experience The brand has also expanded its product matrix to include women's and footwear lines, with women's products accounting for 20% of revenue in 2023 and expected to exceed 40% in the future [75][91] - Salomon and Wilson have relatively late DTC expansion in China, with Salomon opening its first major DTC stores in 2022 and Wilson opening its first Shanghai store in 2023 Both brands are targeting high-end commercial areas [4][86] Product Innovation - Arc'teryx has continuously improved its product technology, with innovations such as the Alpha SV jacket, which has seen a 33% reduction in weight from 2002 to 2016 The brand has also developed the Veilance line, a high-end business segment with prices 2-3 times higher than its mainline products [88][91] - Salomon has introduced multiple innovative technologies, such as Sensifit and Contagrip, which have helped establish its position in the running shoe industry Wilson's innovative products accounted for 15% of its revenue in 2023 [88]

Tara Moore/DigitalVision via Getty Images Investment summary My recommendation for Amer Sports (NYSE:AS) is a buy rating. The solid demand momentum seen in 2Q24 was very encouraging, and I think this momentum can persist for the near term, enabling AS to meet consensus EPS estimates for FY24 and FY25. This should drive a positive multiple re-rating as the market starts to comp AS against peers with lower EPS growth but trades at a higher multiple. Business Overview AS has multiple sports & outdoor brands in ...