Johnson Outdoors on Thursday Told Investors they could anticipate Q3 earnings to be in the 57 cents to 61 cents per share range, off from the 78 cents earned in the year-ago period.
The good news is that these lowered expectations will reflect one-time pre-tax charges between $3.3 million and $3.8 million stemming from a discontinued ac-quisition and a voluntary product recall of a UWATEC dive computer, which was announced last week by the U.S. Consumer Product Safety Commission.
These one- time charges will have a negative impact in the range of 26 cents to 30 cents per diluted share. Without the charges, JOUT would be looking at EPS in the range of 83 cents to 91 cents.
JOUT shares climbed 7.0% for the week to close at $14.09 on Friday, even as analysts sounded a cautious note due to potential lawsuits stemming from a recall of 6,000 potentially defective dive computers.
According to the CPSCs announcement on the recall, the signal system for depth, tank pressure, and ascent rate may not function, causing safety problems for the diver.