HELSINKI - Amer Sports, Inc. (NYSE: AS), a conglomerate of well-known sports and outdoor brands, disclosed the commencement of a public offering of 34 million ordinary shares today. The company, currently trading near its 52-week high of $26.85, announced that underwriters have been given a 30-day option to purchase up to an additional 5.1 million shares.
The Finnish-based company, which houses brands such as Arc'teryx, Salomon, and Wilson, plans to channel the net proceeds from this offering towards reducing its debt, specifically by repaying portions of its outstanding borrowings under various term loan facilities. According to InvestingPro data, the company operates with a moderate debt-to-equity ratio of 0.68 and maintains healthy liquidity with a current ratio of 1.62.
The offering's joint book-running managers are BofA Securities and J.P. Morgan, with Goldman Sachs, Morgan Stanley (NYSE:MS), Citigroup (NYSE:C), and UBS Investment Bank also serving as bookrunners. Interested parties can obtain copies of the preliminary prospectus from the SEC's website or directly from the book-runners.
A registration statement for this offering has been filed with the U.S. Securities and Exchange Commission but has not yet been approved. The sale of securities will comply with the registration requirements of the Securities Act of 1933, as amended. The completion and specifics of the offering are subject to market conditions, and there is no certainty regarding the completion schedule or the offering's final terms.
Amer Sports is recognized for its premium positioning in the market and its commitment to innovation and performance. The company employs over 11,400 people worldwide and has shown strong momentum, with revenues reaching $4.84 billion in the last twelve months. InvestingPro analysis indicates the company is currently overvalued, despite impressive year-to-date returns of 96%. InvestingPro subscribers have access to 15 additional key insights about Amer Sports' financial health and growth potential.
The press release contains forward-looking statements regarding the potential offering and is subject to risks and uncertainties that could cause actual results to differ materially. While currently unprofitable with a loss per share of $0.08, analysts tracked by InvestingPro expect the company to achieve profitability this year with forecasted earnings of $0.44 per share. These statements reflect the company's expectations as of today, and Amer Sports does not undertake any obligation to update these forward-looking statements in the future.
This news article is based on a press release statement from Amer Sports, Inc.
In other recent news, Amer Sports has reported robust Q3 results, with a 17% year-over-year revenue increase to $1.35 billion, surpassing past expectations. The company's Technical Apparel segment, which includes Arc'teryx, saw a significant 34% revenue jump to $520 million. In light of these developments, Amer Sports raised its full-year 2024 adjusted earnings per share guidance to $0.43-$0.45, up from its previous outlook and above the consensus estimate of $0.41.
Analysts from TD Cowen, Baird, and UBS have shown confidence in Amer Sports. TD Cowen raised the stock's price target from $21.00 to $23.00, maintaining a Buy rating based on the company's strong Q3 performance and optimistic forecast for fiscal year 2025. Baird updated its financial outlook, increasing the price target to $24.00 from the previous $20.00, while UBS increased its price target from $24.00 to $27.00.
These recent developments reflect Amer Sports' robust fundamentals and potential for continued growth, particularly for its Arc'teryx brand and in the Chinese market. As per UBS, Amer Sports is expected to deliver positive surprises in its earnings per share in the upcoming quarters. The company now expects full-year revenue growth of 16-17%.
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