What happened

Shares of Nautilus (NYSE:NLS) were tumbling over 15% Tuesday morning after the home fitness equipment maker reported third-quarter earnings after the market's close yesterday.

So what

Nautilus said it delivered "record results" for the period, with sales surging 152% to $155.4 million and generating operating income of $44 million, the highest in company history.

It noted the company doesn't plan to provide specific guidance on an ongoing basis, but said the unique state of the market made it necessary to update investors on where it sees the business heading. Nautilus said it is forecasting full-year sales of between $540 million and $565 million, a 75% to 83% increase over last year. It suggests fourth-quarter sales should double or more from 2019.

Woman using Nautilus barbells

Image source: Nautilus.

Now what 

It's not often that a company enjoys such blistering growth and guidance only to have its stock walloped by the market, but the reaction seems to be a result of the positive developments of a COVID-19 vaccine. Shares plunged more than 21% yesterday.

Pfizer said its vaccine displayed a 90% success rate in late-stage trials, which if broadly distributed, would allow gyms to reopen. That would dampen consumer enthusiasm for the home workout trend that accelerated during the pandemic.

It seems premature to douse Nautilus with cold water, though, as there remains a long time before any vaccine will become available and in the meantime states are again considering locking down as cases of coronavirus spike.

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