Recreational boats manufacturer Malibu Boats (NASDAQ:MBUU) will be reporting results tomorrow morning. Here’s what to look for.
Malibu Boats beat analysts’ revenue expectations by 5.8% last quarter, reporting revenues of $171.6 million, down 32.9% year on year. It was a stunning quarter for the company, with an impressive beat of analysts’ EPS estimates and a solid beat of analysts’ EBITDA estimates. It reported 1,024 boats sold, down 39.7% year on year.
Is Malibu Boats a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting Malibu Boats’s revenue to decline 9.4% year on year to $191.2 million, improving from the 37.7% decrease it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.18 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Malibu Boats has missed Wall Street’s revenue estimates five times over the last two years.
Looking at Malibu Boats’s peers in the consumer discretionary segment, some have already reported their Q4 results, giving us a hint as to what we can expect. Nike’s revenues decreased 7.7% year on year, beating analysts’ expectations by 1.8%, and VF Corp reported revenues up 1.9%, topping estimates by 2.8%. Nike’s stock price was unchanged following the results.
Read our full analysis of Nike’s results here and VF Corp’s results here.
There has been positive sentiment among investors in the consumer discretionary segment, with share prices up 5.1% on average over the last month. Malibu Boats’s stock price was unchanged during the same time and is heading into earnings with an average analyst price target of $45.63 (compared to the current share price of $37.90).
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