Record Revenue and Unprecedented Earnings Surge Propel On Running Stock (ONON) to New Heights

• Swiss shoemaker On Holding, the parent company of On Running, reported a significant Q1 earnings beat, causing ONON stock to surge.
• On Holding reported earnings of 36 cents per share, more than double the 17 cents reported last year, and revenue jumped nearly 20% to a record $561 million.
• The company maintains its outlook of at least 30% net sales growth for the year and expects to achieve a gross-profit margin of around 60% for the year.

On Holding, the parent company of On Running, exceeded Q1 forecasts, leading to a surge in ONON stock. The company maintains a positive outlook for the year, expecting significant sales growth and a high gross-profit margin.

Impressive Q1 Results

On Holding (ONON) reported impressive Q1 results, with earnings per share of 36 cents, more than double the 17 cents reported last year. This significantly surpassed FactSet analysts’ expectations, which predicted a slight decrease to 15 cents per share. Revenue also saw a substantial increase, jumping nearly 20% to a record $561 million, although this marked the fifth consecutive quarter of slowing sales growth. Analysts had forecasted a revenue increase of 16.8% to $548 million.

Positive Outlook for the Year

Despite the slowing sales growth, On Holding maintains a positive outlook for the year. The company expects at least 30% net sales growth and a gross-profit margin of around 60%. FactSet predicts an 87.5% earnings increase to 75 cents per share in 2024, with a 23% revenue growth to $2.511 billion.

ONON Stock Reaction

Following the announcement of the Q1 results, ONON stock spiked 10% in premarket trading on Tuesday. If the early move holds, shares are set to rebound above their 50-day moving average at the open. Despite wrestling through multiple consolidations, the stock has managed a 13.8% gain for the year through Monday’s close.

Conclusion

The impressive Q1 results and positive outlook for the year have boosted investor confidence in On Holding. With the company expecting significant sales growth and a high gross-profit margin for the year, ONON stock is poised for potential growth. However, investors should keep an eye on the slowing sales growth and market reactions.