Recreational boats manufacturer Malibu Boats (NASDAQ: MBUU) will be reporting results tomorrow before market open. Here’s what to look for.
Malibu Boats beat analysts’ revenue expectations by 4.8% last quarter, reporting revenues of $200.3 million, down 5.1% year on year. It was a stunning quarter for the company, with a solid beat of analysts’ EPS estimates and an impressive beat of analysts’ adjusted operating income estimates. It reported 1,222 boats sold, down 11% 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 grow 9.8% year on year to $223.3 million, a reversal from the 45.8% decrease it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.74 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 four times over the last two years.
Looking at Malibu Boats’s peers in the leisure products segment, some have already reported their Q1 results, giving us a hint as to what we can expect. Latham posted flat year-on-year revenue, meeting analysts’ expectations, and Harley-Davidson reported a revenue decline of 23.1%, falling short of estimates by 1.2%. Harley-Davidson traded up 5% following the results.
Read our full analysis of Latham’s results here and Harley-Davidson’s results here.
There has been positive sentiment among investors in the leisure products segment, with share prices up 12.7% on average over the last month. Malibu Boats is up 15.7% during the same time and is heading into earnings with an average analyst price target of $39.71 (compared to the current share price of $29.11).
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