Wunderlich On Nautilus: Another Impressive Quarter

Nautilus, Inc. (NYSE: NLS) shares climbed more than 13 percent, nearing its 52-week high of $21.39 after the consumer fitness products company reported a strong second-quarter results.

Nautilus reported second-quarter EPS/revenue of $0.12/$79 million, ahead of consensus forecasts of $0.09/$78 million, "driven by solid gross margin expansion in both the Direct and Retail business segments."

"Key new products such as Nautilus-branded "smart" cardio machines in the Retail channel as well as increased global distribution for the highly successful Bowflex MAX Trainer cardio machine helped drive solid top-line growth," Wunderlich analyst Rommel Dionisio said.

Related Link: Nautilus Beats, Says Retail Segment Revenues Increased 89% In Q2

The analyst said future growth drivers include additional penetration into the specialty retail channel; expansion of Bowflex MAX Trainer into overseas markets such as the UK, Australia and New Zealand; and the introduction of MAX Trainer M7.

Further, Dionisio expects the new product launches at the company's upcoming showcase event in September to be a positive catalyst for shares.

The analyst has a Buy rating and $24 target price on the stock. At time of writing, Nautilus was up 13.94 percent at $21.01.

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