NLS - Why Nautilus Stock Plummeted Nearly 28% Today
Shares of home gym-equipment company Nautilus (NYSE: NLS) fell as much as 27.5% on Feb. 23 before regaining some lost ground. Still, by roughly 2 p.m. EST, the stock remained lower by a huge 20%. The company's earnings, released after the market closed on Feb. 22, were the reason, but that needs some explanation.
The bottom line for Nautilus was pretty good. The fitness-equipment maker earned $0.89 per share in the fourth quarter of 2020 compared to just $0.12 in the same quarter of 2019. That's an impressive increase, helped along by the fact that the coronavirus pandemic forced people to avoid public spaces, like gyms. This, in turn, led to an increase in sales of home gym equipment as people didn't want to give up their exercising habits. Wall Street had been projecting earnings of $0.75 per share, so Nautilus beat analyst consensus as well. Normally, you would expect a stock to rise on such news. But that clearly didn't happen.
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Why Nautilus Stock Plummeted Nearly 28% Today