Core Viewpoint - SharkNinja, Inc. (SN) is experiencing significant selling pressure, with a 15.4% decline over the past four weeks, but is now positioned for a potential trend reversal as it enters oversold territory, supported by analyst expectations of better-than-previously predicted earnings [1]. Group 1: Stock Performance and Indicators - The stock's Relative Strength Index (RSI) is currently at 26.18, indicating it is oversold and suggesting a potential reversal in trend [3]. - A stock is generally considered oversold when its RSI falls below 30, which can signal entry opportunities for investors looking for rebounds [2]. Group 2: Earnings Estimates and Analyst Consensus - Over the last 30 days, the consensus earnings per share (EPS) estimate for SN has increased by 0.4%, indicating a positive trend in earnings revisions [3]. - There is strong agreement among sell-side analysts in raising earnings estimates for SN, which typically correlates with price appreciation in the near term [3]. - SN holds a Zacks Rank 2 (Buy), placing it in the top 20% of over 4,000 ranked stocks based on earnings estimate revisions and EPS surprises, further supporting its potential for a turnaround [3].

Core Insights - SharkNinja, Inc. reported $1.43 billion in revenue for the quarter ended September 2024, a year-over-year increase of 33.3% [1] - The company's EPS for the same period was $1.21, up from $0.95 a year ago, exceeding the consensus EPS estimate of $1.14 by 6.14% [1] - Revenue surpassed the Zacks Consensus Estimate of $1.32 billion by 8.04% [1] Revenue Breakdown - Net Sales from Cleaning Appliances reached $527.45 million, exceeding the average estimate of $491.17 million [3] - Net Sales from Other categories were $120.83 million, below the average estimate of $158.57 million [3] - Net Sales from Food Preparation Appliances totaled $366.83 million, surpassing the average estimate of $287.85 million [3] - Net Sales from Cooking and Beverage Appliances amounted to $411.45 million, exceeding the average estimate of $380.43 million [3] Stock Performance - SharkNinja, Inc. shares have returned +3.1% over the past month, outperforming the Zacks S&P 500 composite's +1% change [4] - The stock currently holds a Zacks Rank 2 (Buy), indicating potential for outperformance in the near term [4]

Earnings Performance - SharkNinja, Inc reported quarterly earnings of $1 21 per share, beating the Zacks Consensus Estimate of $1 14 per share, representing a 6 14% earnings surprise [1] - Compared to the year-ago quarter, earnings increased from $0 95 per share to $1 21 per share [1] - The company has surpassed consensus EPS estimates in each of the last four quarters [2] Revenue Growth - SharkNinja, Inc posted revenues of $1 43 billion for the quarter ended September 2024, surpassing the Zacks Consensus Estimate by 8 04% [2] - Year-over-year revenue growth was significant, increasing from $1 07 billion to $1 43 billion [2] - The company has topped consensus revenue estimates in each of the last four quarters [2] Stock Performance - SharkNinja, Inc shares have gained 116 8% since the beginning of the year, significantly outperforming the S&P 500's gain of 21 9% [3] - The stock's immediate price movement will depend on management's commentary during the earnings call [3] Future Outlook - The current consensus EPS estimate for the coming quarter is $1 34 on $1 58 billion in revenues [7] - For the current fiscal year, the consensus EPS estimate is $4 24 on $5 22 billion in revenues [7] - The Zacks Rank for SharkNinja, Inc is currently 2 (Buy), indicating expected market outperformance in the near future [6] Industry Context - SharkNinja, Inc belongs to the Zacks Furniture industry, which is currently in the bottom 25% of Zacks industries [8] - The top 50% of Zacks-ranked industries outperform the bottom 50% by more than 2 to 1 [8] Peer Comparison - Snail, Inc, another company in the Zacks Consumer Discretionary sector, is expected to report quarterly earnings of $0 07 per share, representing a year-over-year change of +158 3% [9] - Snail, Inc's revenues are expected to be $25 million, up 178 4% from the year-ago quarter [9]

[Condensed Consolidated Financial Statements](index=1&type=section&id=Condensed%20Consolidated%20Financial%20Statements) This section presents the company's condensed consolidated financial statements, detailing its financial position, performance, and cash flows [Condensed Consolidated Balance Sheets](index=2&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) As of September 30, 2024, total assets increased to **$4.24 billion**, liabilities to **$2.44 billion**, and equity to **$1.79 billion** Balance Sheet Highlights (as of Sep 30, 2024 vs. Dec 31, 2023) | Account | Sep 30, 2024 ($ thousands) | Dec 31, 2023 ($ thousands) | Change | | :--- | :--- | :--- | :--- | | **Total Current Assets** | 2,516,325 | 1,897,284 | ▲ 32.6% | | Inventories | 1,076,246 | 699,740 | ▲ 53.8% | | Accounts receivable, net | 1,190,410 | 985,172 | ▲ 20.8% | | **Total Assets** | **4,237,325** | **3,487,070** | **▲ 21.5%** | | **Total Current Liabilities** | 1,510,166 | 1,125,132 | ▲ 34.2% | | Debt, current | 214,344 | 24,157 | ▲ 787.3% | | **Total Liabilities** | **2,442,786** | **2,008,177** | **▲ 21.6%** | | **Total Shareholders' Equity** | **1,794,539** | **1,478,893** | **▲ 21.3%** | [Condensed Consolidated Statements of Income](index=4&type=section&id=Condensed%20Consolidated%20Statements%20of%20Income) For the nine months ended September 30, 2024, net sales grew **30.1%** to **$3.74 billion**, with net income more than doubling Income Statement Performance (Nine Months Ended Sep 30) | Metric | 2024 ($ thousands) | 2023 ($ thousands) | YoY Change | | :--- | :--- | :--- | :--- | | Net Sales | 3,741,452 | 2,876,211 | ▲ 30.1% | | Gross Profit | 1,822,523 | 1,284,957 | ▲ 41.8% | | Operating Income | 439,040 | 272,810 | ▲ 60.9% | | Net Income | 309,989 | 117,754 | ▲ 163.2% | | Diluted EPS | $2.20 | $0.85 | ▲ 158.8% | Income Statement Performance (Three Months Ended Sep 30) | Metric | 2024 ($ thousands) | 2023 ($ thousands) | YoY Change | | :--- | :--- | :--- | :--- | | Net Sales | 1,426,566 | 1,070,617 | ▲ 33.2% | | Gross Profit | 695,007 | 487,493 | ▲ 42.6% | | Operating Income | 180,262 | 94,548 | ▲ 90.7% | | Net Income | 132,329 | 18,722 | ▲ 606.8% | | Diluted EPS | $0.94 | $0.13 | ▲ 623.1% | [Condensed Consolidated Statements of Comprehensive Income](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Comprehensive%20Income) For the nine months ended September 30, 2024, comprehensive income significantly increased to **$312.8 million** from **$119.3 million** Comprehensive Income Summary (Nine Months Ended Sep 30) | Component | 2024 ($ thousands) | 2023 ($ thousands) | | :--- | :--- | :--- | | Net Income | 309,989 | 117,754 | | Foreign currency translation adjustments | 21,229 | (3,967) | | Unrealized (loss) gain on derivative instruments, net | (18,389) | 5,545 | | **Comprehensive Income** | **312,829** | **119,332** | [Condensed Consolidated Statements of Shareholders' Equity](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Shareholders%27%20Equity) Total shareholders' equity increased to **$1.79 billion** as of September 30, 2024, primarily driven by **$310.0 million** in net income Changes in Shareholders' Equity (Nine Months Ended Sep 30, 2024) | Description | Amount ($ thousands) | | :--- | :--- | | Balance as of Dec 31, 2023 | 1,478,893 | | Net Income | 309,989 | | Share-based compensation | 47,341 | | Vesting of RSUs, net of shares withheld for taxes | (50,011) | | Shares issued under ESPP | 5,487 | | Other comprehensive income, net of tax | 2,840 | | **Balance as of Sep 30, 2024** | **1,794,539** | [Condensed Consolidated Statements of Cash Flows](index=10&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) For the nine months ended September 30, 2024, operating activities had a net cash outflow of **$43.0 million**, reversing prior year inflows Cash Flow Summary (Nine Months Ended Sep 30) | Cash Flow Category | 2024 ($ thousands) | 2023 ($ thousands) | | :--- | :--- | :--- | | Net cash (used in) provided by operating activities | (43,049) | 95,780 | | Net cash used in investing activities | (102,903) | (64,363) | | Net cash provided by (used in) financing activities | 115,288 | (75,042) | | **Net decrease in cash** | **(26,113)** | **(48,393)** | | Cash at beginning of period | 154,061 | 218,770 | | **Cash at end of period** | **127,948** | **170,377** | [Notes to Condensed Consolidated Financial Statements](index=12&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) The notes detail accounting policies, financial components, and key events, including separation from JS Global, revenue disaggregation, and debt [Note 1. Organization and Description of Business](index=12&type=section&id=Note%201.%20Organization%20and%20Description%20of%20Business) SharkNinja, Inc. designs and sells home lifestyle appliances under the **'Shark'** and **'Ninja'** brands, becoming publicly traded on the NYSE in July 2023 - The company designs and creates lifestyle products in categories like Cleaning, Cooking, and Food Preparation Appliances under the **'Shark'** and **'Ninja'** brands[20](index=20&type=chunk) - SharkNinja, Inc. was separated from its former parent, **JS Global**, and began trading on the **NYSE** on **July 31, 2023**[23](index=23&type=chunk) [Note 2. Summary of Significant Accounting Policies](index=12&type=section&id=Note%202.%20Summary%20of%20Significant%20Accounting%20Policies) Financial statements under U.S. GAAP involve significant estimates and show customer concentration risk, with two customers accounting for **37.5%** of receivables Customer Concentration of Accounts Receivable, Net | Customer | Sep 30, 2024 % | Dec 31, 2023 % | | :--- | :--- | :--- | | Customer A | 25.5% | 22.4% | | Customer B | 12.0% | 16.7% | Customer Concentration of Net Sales (Nine Months Ended Sep 30) | Customer | 2024 % | 2023 % | | :--- | :--- | :--- | | Customer A | 20.1% | 18.9% | | Customer C | 11.7% | 15.0% | - The company operates as a **single reportable segment**, with performance assessed at the consolidated level by the CEO[46](index=46&type=chunk) [Disaggregation of Net Sales](index=15&type=section&id=Disaggregation%20of%20Net%20Sales) For the nine months ended September 30, 2024, domestic sales were **69.7%** of net sales, with Ninja contributing **52.3%** Net Sales by Region (Nine Months Ended Sep 30, 2024) | Region | Amount ($ thousands) | % of Net Sales | | :--- | :--- | :--- | | Domestic | 2,609,152 | 69.7% | | International | 1,132,300 | 30.3% | | **Total** | **3,741,452** | **100.0%** | Net Sales by Brand (Nine Months Ended Sep 30, 2024) | Brand | Amount ($ thousands) | % of Net Sales | | :--- | :--- | :--- | | Shark | 1,784,299 | 47.7% | | Ninja | 1,957,153 | 52.3% | | **Total** | **3,741,452** | **100.0%** | Net Sales by Product Category (Nine Months Ended Sep 30, 2024) | Category | Amount ($ thousands) | % of Net Sales | | :--- | :--- | :--- | | Cleaning Appliances | 1,415,488 | 37.8% | | Cooking and Beverage Appliances | 1,120,371 | 29.9% | | Food Preparation Appliances | 836,782 | 22.4% | | Other | 368,811 | 9.9% | | **Total** | **3,741,452** | **100.0%** | [Note 9. Debt](index=25&type=section&id=Note%209.%20Debt) In July 2023, the company secured an **$810.0 million** term loan and a **$500.0 million** revolving credit facility, with significant outstanding balances as of September 30, 2024 - The company entered into a new credit agreement in July 2023, which includes an **$810.0 million term loan** and a **$500.0 million revolving credit facility**, both maturing in **July 2028**[66](index=66&type=chunk) Debt Composition (as of Sep 30, 2024) | Debt Component | Amount ($ thousands) | | :--- | :--- | | 2023 Term Loans | 789,750 | | 2023 Revolving Facility | 175,000 | | Less: deferred financing costs | (4,431) | | **Total debt, net** | **960,319** | - As of September 30, 2024, **$175.0 million** was outstanding on the revolving credit facility, with an available balance of **$315.9 million**[68](index=68&type=chunk) [Note 10. Commitments and Contingencies](index=28&type=section&id=Note%2010.%20Commitments%20and%20Contingencies) As of September 30, 2024, the company had **$28.7 million** in purchase obligations and settled a patent infringement claim for **$13.5 million** in Q3 2024 - As of September 30, 2024, the company has remaining non-cancelable purchase obligations of **$28.7 million**[73](index=73&type=chunk) - A patent infringement claim was settled in **Q3 2024**, resulting in a recognized liability of **$13.5 million**[76](index=76&type=chunk) [Note 11. Shareholders' Equity and Equity Incentive Plan](index=28&type=section&id=Note%2011.%20Shareholders%27%20Equity%20and%20Equity%20Incentive%20Plan) The 2023 Equity Incentive Plan has **13.9 million** shares available, with **2.1 million** unvested RSUs and **$38.3 million** in unrecognized compensation - The 2023 Equity Incentive Plan initially made **13,898,287 ordinary shares** available for future grants[78](index=78&type=chunk) RSU Activity (Nine Months Ended Sep 30, 2024) | Activity | Number of Shares | | :--- | :--- | | Unvested as of Dec 31, 2023 | 3,857,986 | | Granted | 212,750 | | Vested | (1,862,980) | | Cancelled/Forfeited | (98,295) | | **Unvested as of Sep 30, 2024** | **2,109,461** | - As of September 30, 2024, unrecognized share-based compensation cost related to RSUs was **$38.3 million**, to be recognized over a weighted average of **1.3 years**[82](index=82&type=chunk) [Note 12. Income Taxes](index=30&type=section&id=Note%2012.%20Income%20Taxes) The effective tax rate for the nine months ended September 30, 2024, significantly decreased to **23.9%** from **42.0%** due to prior-year separation impacts Effective Tax Rate (ETR) Comparison | Period | 2024 ETR | 2023 ETR | | :--- | :--- | :--- | | Three Months Ended Sep 30 | 24.1% | 75.3% | | Nine Months Ended Sep 30 | 23.9% | 42.0% | - The decrease in the ETR was primarily due to prior-year impacts from the **separation, distribution, and refinancing**, such as withholding taxes and transaction costs[85](index=85&type=chunk) [Note 13. Net Income Per Share](index=30&type=section&id=Note%2013.%20Net%20Income%20Per%20Share) For the nine months ended September 30, 2024, basic EPS was **$2.22** and diluted EPS was **$2.20**, significantly up from **$0.85** in the prior year Net Income Per Share Calculation (Nine Months Ended Sep 30) | Metric | 2024 | 2023 | | :--- | :--- | :--- | | Net Income ($ thousands) | 309,989 | 117,754 | | Weighted-average shares, basic | 139,818,196 | 139,059,206 | | Weighted-average shares, diluted | 140,974,062 | 139,179,724 | | **Net income per share, basic** | **$2.22** | **$0.85** | | **Net income per share, diluted** | **$2.20** | **$0.85** | [Note 14. Related Party Transactions](index=31&type=section&id=Note%2014.%20Related%20Party%20Transactions) The company maintains significant related-party transactions with former parent JS Global, with finished goods purchases decreasing to **$156.2 million** - Following the separation, **JS Global** remains a related party due to a **common majority shareholder**[88](index=88&type=chunk) Key Transactions with JS Global (Nine Months Ended Sep 30) | Transaction Type | 2024 ($ thousands) | 2023 ($ thousands) | | :--- | :--- | :--- | | Finished goods purchased from JS Global | 156,200 | 952,000 | | Sourcing service fees paid to JS Global | 32,900 | 19,000 | | Royalty income earned from JS Global | 6,962 | 607 | - As of September 30, 2024, accounts payable to related parties was **$52.7 million**, down from **$101.5 million** at year-end 2023[96](index=96&type=chunk)

Core Viewpoint - SharkNinja, Inc. has been upgraded to a Zacks Rank 1 (Strong Buy), indicating a positive outlook on its earnings estimates, which is expected to drive buying pressure and increase its stock price [1][2]. Earnings Estimate Revisions - For the fiscal year ending December 2024, SharkNinja, Inc. is projected to earn $4.22 per share, reflecting a 31.1% increase from the previous year's reported figure [5]. - Over the past three months, the Zacks Consensus Estimate for SharkNinja, Inc. has risen by 11.4%, indicating a trend of increasing earnings estimates [5]. Impact of Institutional Investors - Changes in earnings estimates are strongly correlated with stock price movements, primarily due to institutional investors who adjust their valuations based on these estimates [3]. - Rising earnings estimates and the subsequent rating upgrade suggest an improvement in SharkNinja's underlying business, which is likely to attract investor interest and push the stock price higher [3]. Zacks Rank System - The Zacks Rank system classifies stocks into five groups based on earnings estimates, with Zacks Rank 1 stocks historically generating an average annual return of +25% since 1988 [4]. - SharkNinja's upgrade to Zacks Rank 1 places it in the top 5% of Zacks-covered stocks, indicating a strong potential for market-beating returns in the near term [6].

The Consumer Discretionary group has plenty of great stocks, but investors should always be looking for companies that are outperforming their peers. SharkNinja, Inc. (SN) is a stock that can certainly grab the attention of many investors, but do its recent returns compare favorably to the sector as a whole? By taking a look at the stock's year-to-date performance in comparison to its Consumer Discretionary peers, we might be able to answer that question. SharkNinja, Inc. is a member of our Consumer Discret ...

If you are looking for a stock that has a solid history of beating earnings estimates and is in a good position to maintain the trend in its next quarterly report, you should consider SharkNinja, Inc. (SN) . This company, which is in the Zacks Furniture industry, shows potential for another earnings beat. This company has an established record of topping earnings estimates, especially when looking at the previous two reports. The company boasts an average surprise for the past two quarters of 15.96%. For th ...

SharkNinja (NYSE: SN ) offers cleaning, food preparation, and, in general, all kinds of appliances for the home, indoors and outdoors. It sees itself as "a product design and technology company." It positions itself in the middle of premium brands and low-cost Investing in high-growth opportunities across industries, employing a value investing approach that prioritizes robust business models and strategic foresight. Focusing on companies with the potential to profoundly influence the global landscape in th ...

Company Overview - SharkNinja, Inc (SN) is experiencing significant attention from investors due to high implied volatility in the options market, particularly the Oct 18, 2024 $30 Put option [1] - The company currently holds a Zacks Rank 1 (Strong Buy) in the Furniture industry, which is positioned in the Bottom 31% of the Zacks Industry Rank [3] Analyst Insights - Over the last 60 days, four analysts have raised their earnings estimates for SharkNinja for the current quarter, with no downward revisions, resulting in an increase in the Zacks Consensus Estimate from $1.06 to $1.12 per share [3] Options Market Dynamics - The high implied volatility suggests that options traders are anticipating a significant price movement for SharkNinja shares, potentially indicating an upcoming event that could lead to a major rally or sell-off [2][4] - Seasoned options traders often seek to sell premium on options with high implied volatility, aiming to benefit from the decay of the option's value if the underlying stock does not move as much as expected [4]

Company Performance - SharkNinja, Inc. (SN) closed at $107.57, reflecting a -0.34% change from the previous day, underperforming the S&P 500's gain of 0.01% [1] - Over the past month, SharkNinja's shares increased by 13.42%, outperforming the Consumer Discretionary sector's gain of 3.93% and the S&P 500's gain of 1.21% [1] Upcoming Earnings - The upcoming earnings release is projected to show an EPS of $1.13, indicating an 18.95% increase year-over-year [2] - Revenue is expected to reach $1.29 billion, representing a 20.94% growth compared to the same quarter last year [2] Full Year Projections - For the full year, earnings are projected at $4.24 per share, reflecting a +31.68% change from the prior year [3] - Revenue for the full year is estimated at $5.18 billion, indicating a +21.88% increase from the previous year [3] Analyst Estimates - Recent adjustments to analyst estimates suggest a favorable outlook on SharkNinja's business health and profitability [4] - The Zacks Rank system, which incorporates estimate changes, currently ranks SharkNinja as 1 (Strong Buy) [6] Valuation Metrics - SharkNinja is trading with a Forward P/E ratio of 25.48, which is a premium compared to the industry average of 13.07 [7] - The company has a PEG ratio of 1.45, higher than the Furniture industry's average PEG ratio of 1.2 [7] Industry Context - The Furniture industry, part of the Consumer Discretionary sector, has a Zacks Industry Rank of 177, placing it in the bottom 30% of over 250 industries [8] - Research indicates that top-rated industries outperform the bottom half by a factor of 2 to 1 [8]