Rocky Brands' Q3 Was Not As Bad As The Market Reaction, The Stock Is Now A Buy

Summary

• Rocky Brands, Inc. reported Q3 2024 results today, with revenues down YoY, and more challenged margins.
• This reversed a trend of revenues growing (adjusted for non-recurring factors) and operating margins growing, in line with deleveraging financially.
• Rocky is down 40% since I wrote a Hold article on the name in July 2024. The stock now offers a yield of 16% on projected earnings at 9% margins.
• If we model lower margins, maybe 7%, the yield is still ok, at 11%, but now as attractive.
• I think Rocky is attractive on a speculative basis, posed on a continued recovery, and not so challenging end-markets.

Jetta Productions Inc

Rocky Brands, Inc. (NASDAQ:RCKY) reported Q3 2024 results today, with revenues down YoY, and more challenged margins. This changed its trend of revenues growing (adjusted for non-recurring factors) and operating margins growing, in line with deleveraging financially. The change in trend

Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, but may initiate a beneficial Long position through a purchase of the stock, or the purchase of call options or similar derivatives in RCKY over the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.