Leatt (OTCMKTS:LEAT – Get Free Report) announced its quarterly earnings results on Thursday. The company reported $0.34 earnings per share (EPS) for the quarter, Zacks reports. Leatt had a net margin of 5.56% and a return on equity of 8.52%.
Here are the key takeaways from Leatt’s conference call:
- Leatt reported record quarterly revenue in four years of $20.46 million, up 43% year over year, and net income of $2.2 million, up 309%. Operating costs grew more slowly than revenue, lifting operating income 367% and net margin to 10.8% from 3.8%.
- Growth was broad across products: helmet sales rose 68%, body armor 48%, and other products, parts, and accessories 26%; neck brace sales declined 12%. Distributor sales benefited from shipments shifted out of Q2, though distributor growth across Q2 and Q3 combined was about 22%.
- Cash, cash equivalents, and restricted cash stood at $15.5 million, while operating cash flow for the first nine months more than tripled year over year to $4.59 million. Inventory fell $1.6 million from year-end despite revenue growth, and management said it expects to deploy cash toward growth, including GRiTT.
- Management said demand and reordering momentum remain strong and expects growth to continue, with GRiTT beginning its U.S. rollout and ADV seen as a faster-growing category. It also flagged geopolitical risks and shipping-cost pressure; a $500,000–$600,000 tariff recovery boosted Q3 margins by about two percentage points, while management said margins excluding the recovery were roughly stable year over year.
Leatt Price Performance
Leatt stock traded up $1.35 during midday trading on Thursday, reaching $11.45. 61,665 shares of the company traded hands, compared to its average volume of 4,163. The firm has a market capitalization of $71.21 million, a price-to-earnings ratio of 20.09 and a beta of 0.81. The business has a 50 day moving average of $11.25 and a two-hundred day moving average of $10.98. Leatt has a 12 month low of $8.31 and a 12 month high of $13.37.
Leatt Company Profile
Leatt Corporation is a South African company that designs, develops and markets protective equipment and apparel for action sports and powersports participants. Its products are sold primarily under the Leatt brand and are intended for motocross, off-road motorcycling, mountain biking and related activities. The company’s product portfolio includes neck braces, helmets, body armor, chest protectors, knee and elbow guards, gloves, riding jerseys and pants, boots, footwear, hydration systems and other protective or performance-oriented accessories.
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