Amer Sports, Inc. Non-GAAP EPS of -$0.11 misses by $0.08, revenue of $1.32B beats by $20M (NYSE:AS)
- Amer Sports, Inc. press release (NYSE:AS): Q4 Non-GAAP EPS of -$0.11 misses by $0.08.
- Revenue of $1.32B (+10.0% Y/Y) beats by $20M.
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OUTLOOK
Andrew Page said “Strengthening our balance sheet and deleveraging the business will remain a key focus while balancing investments in key growth drivers. We are off to a solid start in 2024 as we continue to enjoy benefits from our business mix shifting toward our high-margin Arc’teryx brand.”
Long-term Algorithm
- Low double-digit to mid-teens annual sales growth
- 300+ basis points of gross margin expansion over next 3-5 years
- 30-70 basis points of annual adjusted operating margin expansion
First Quarter 2024
Amer Sports is providing the following guidance for the first quarter ending March 31, 2024:
- Reported revenue growth: 6-8%
- Adjusted gross margin: approximately 53.5%
- Adjusted operating margin: 9.0-10.0%
- Net finance cost: $100-110 million ($45-50 million per quarter on an ongoing basis).
- Effective tax rate on adjusted pre-tax income: 25-35%
- Fully diluted share count: 510 million
- Diluted EPS: $(0.01) to $0.02 (this includes an $0.08-0.09 negative impact to EPS from non-recurring finance costs related to our refinancing in February)
- Technical Apparel: revenue growth above 30%, adjusted segment operating margin slightly above 20.0%
- Outdoor Performance: revenue flat year over year, mid-single-digit adjusted segment operating margin
- Ball & Racquet: revenue down double-digits, low-to-mid single-digit adjusted segment operating margin
Full-Year 2024
Amer Sports is providing the following guidance for the year ending December 31, 2024:
- Reported revenue growth: Mid-teens
- Adjusted gross margin: 53.5-54.0%
- Adjusted operating margin: 10.5-11.0%
- D&A: $258 million (including $100-110 million of ROU depreciation)
- Net finance cost: $240-250 million ($180-190 million on an ongoing basis)
- Effective tax rate on adjusted pre-tax income: 25-35%
- Fully diluted share count: 510 million
- Diluted EPS: $0.30-0.40 (this includes an $0.08-0.09 negative impact to EPS from non-recurring finance costs related to our refinancing in February)
- Technical Apparel: revenue growth above 20%, adjusted segment operating margin slightly above 20.0%
- Outdoor Performance: high-single-digit revenue growth, high-single-digit adjusted segment operating margin
- Ball & Racquet: low-to-mid-single digit revenue growth, mid-single-digit adjusted segment operating margin
