NLS - Embedded Expectations Analysis - 2019 03 06
Nautilus Inc. (NLS:USA) currently trades below corporate averages relative to UAFRS-based (Uniform) Earnings, with a 10.9x Uniform P/E, implying bearish expectations for the firm. Meanwhile, management has concerns about Bowflex product launches, the capabilities of their Max Intelligence Platform, inventory levels, and margin pressures.Specifically, they may be concerned about continued income declines and missing sales targets. Additionally, management may lack confidence in their new Bowflex product launches, the strength of their retail channel, and their ability to sustain international sales growth. Moreover, they may be overstating the capabilities of their Max Intelligence Platform and the progress of their digital integration, and may be concerned about their partnerships with Vi Technologies and Samsung. Also, management may be downplaying concerns about inventory increases and margin pressures from promotional pricing, and may be exaggerating the potential of subscription offerings.
Nautilus is a consumer fitness products company. The company's business activities include designing, developing, sourcing and marketing cardio and strength fitness products and related accessories for consumer and commercial use. The company markets its products through two distribution channels, Direct and Retail. The company's direct business provides products directly to consumers through television advertising, the Internet and catalogs. The company's retail business provides its products through a network of independent companies to reach consumers in both the home use, as well as commercial use, markets in the U.S. and internationally. The company is also engaged in the licensing of its brands and intellectual property.
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