YETI Holdings (NYSE:YETI) shares are on the rise today after the outdoor and recreation products maker posted a better-than-anticipated second-quarter bottom line. During the quarter, revenue declined 4.2% year-over-year to $402.5 million, falling short of expectations by nearly $8.8 million. EPS at $0.57 though comfortably scaled past estimates by $0.10.
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While second-quarter sales were impacted by a recall reserve adjustment, the company is seeing rising demand for its hydration solutions, including coolers and drinkware, with positive gains visible from the expansion of its bottle portfolio, straw lid tumblers, and Yonder water bottles. Additionally, YETI is on track to bring its soft cooler and dry gear bag offerings back to the market.
The company had a cash balance of $223.1 million at the end of the quarter and anticipates a return to double-digit growth in the fourth quarter as new product introductions and product line extensions drive growth.
For the full-year 2023, YETI expects adjusted sales to rise 4% to 5% alongside an adjusted operating margin between 15.5% and 16%. EPS for the year is seen landing between $2.23 and $2.32 versus the prior outlook of $2.12 to $2.23.
Overall, the Street has a $47 consensus price target on Yeti alongside a Moderate Buy consensus rating. This points to a nearly 19% potential upside in the stock.
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