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Nautilus: This Home Fitness Company’s Sales Could Be Surging During The Covid-19 Pandemic

Nautilus: This Home Fitness Company’s Sales Could Be Surging During The Covid-19 Pandemic

Mar. 25, 2020 12:00 PM ET

Summary

NLS announced an impressive earnings beat in Q4 of 2019, with EPS of $0.12 beating estimates by $0.26 and revenue of $104.17M, beating analyst estimates by $4.39M.

NLS’ newly installed management team with its record of innovation is engineering a solid turnaround for a company whose performance has been in a downtrend for years.

After NLS’ shares soared above $4 per share recently, the market’s take-no-prisoners crash has brought NLS down to $1.30, despite the company’s recent performance.

I will provide evidence that NLS’ sales could actually be surging this quarter, possibly higher than at any time in the last five years, as the global pandemic forces gym closures and stay-at-home orders.

In the midst of the COVID-19 pandemic, communities are suffering and markets are reeling. There is no greater source of panic than the fear of the unknown. While global markets search for a bottom, small cap stocks are taking some of the biggest beatings as deleveraging compels market participants to sell equities indiscriminately.

One market victim of this selloff is Nautilus, Inc. (NLS), the iconic NYSE listed maker and marketer of home exercise equipment, owning brands such as Bowflex, Schwinn Fitness, Universal, and Octane Fitness.

From $24 per share in 2016 to $1.40 per share now, it has been a long and tough ride down for the stock. How did NLS wind up in traction, and are there signs of a recent turnaround? Further, is the coronavirus pandemic actually turbocharging NLS’s business prospects, and how can we tell?

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