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Why Nautilus Is Running 10% Higher Today

By Rich Duprey - May 11, 2021 at 2:58PM

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The home-fitness equipment maker flexed its financial muscles again.

What happened

Shares of Nautilus (NLS -0.40%) were running 10% higher in afternoon trading after the home-fitness equipment maker reported record sales for the quarter. (The company is in a reporting-period transition to better capture the holiday and New Year season in its end-of-year report.)

So what

Nautilus said revenue for the three-month period more than doubled from the same time last year to $206 million.

That was the second consecutive quarter it had record sales, according to the company, and the amount was the first time revenue had exceeded $200 million in a single quarter. Equally impressive were its operating earnings of almost $40 million, its third-highest level ever.

Fit woman working out on an exercise bike.

Image source: Nautilus.

Now what

Nautilus is focusing its efforts on the mid-tier and premium consumer market after having exited the commercial market last October when it sold its Octane Fitness business. The strategy is different from the one employed by its rival Peloton Interactive (PTON -2.16%), which is diversifying its business into commercial sales to continue growing.

Nautilus also has both a growing connected-fitness business as well as a more traditional strength-training operation, which saw strong sales once again. This helps explain why Nautilus has been the better stock, outperforming Peloton over all periods since the latter's 2019 IPO.

With its new fiscal first-quarter revenue expected to rise another 40% to 50% from the same period last year, Nautilus is set to continue showing just how financially fit it is.

Rich Duprey has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends Peloton Interactive. The Motley Fool has a disclosure policy.

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Stocks Mentioned

Nautilus, Inc. Stock Quote
Nautilus, Inc.
$2.48 (-0.40%) $0.01
Peloton Interactive, Inc. Stock Quote
Peloton Interactive, Inc.
$12.66 (-2.16%) $0.28

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