What happened

Shares of Johnson Outdoors Inc. (NASDAQ:JOUT) were climbing last month after the recreation specialist posted another strong earnings report. The stock gained 10% in the two days following its Aug. 4 third-quarter report and finished August up 26%, according to data from S&P Global Market Intelligence.

As the chart below shows, the stock gained steadily over the first half of the month on momentum from the earnings report.

JOUT Chart

JOUT data by YCharts

So what

Revenue increased 11% to $155.3 million, beating estimates of $149 million, on the strength of new products in Fishing and other warm-weather recreation segments.

Fishing, which makes up the majority of the company's sales and also has the highest profit margins, grew 18% in the quarter to $104 million, and Diving sales climbed 17% thanks to new innovations.

A fisherman sitting in a boat in the water with a sunset in the background.

Image source: Johnson Outdoors.

Further down the income statement, operating income nearly doubled to $24.7 million as the company erased a loss last year in Diving and saw margins improve in all categories. Earnings per share more than doubled to $1.65 from $0.68, with the help of a lower tax rate, crushing estimates at $1.09. With an earnings beat of that size, it wasn't surprising to see the stock soar following the report.

CEO Helen Johnson-Leipold called the quarter's results "outstanding" and credited the company's "continued focus and investment on delivering market-winning innovation."

Now what

Johnson Outdoors did not issue guidance, but the maker of products including canoes and camping equipment looks poised to finish out the year on a strong note as the stock is now up 60% this year after two consecutive blowout earnings report. With discretionary spending on recreation growing thanks to a strong economy and its impressive track record of innovation, Johnson Outdoors should continue to outperform the market.

Jeremy Bowman has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.