Recreational boats manufacturer Malibu Boats (NASDAQ: MBUU) will be reporting earnings this Thursday before the bell. Here’s what you need to know.
Malibu Boats beat analysts’ revenue expectations by 4.3% last quarter, reporting revenues of $194.7 million, up 13.5% year on year. It was an exceptional quarter for the company, with a beat of analysts’ EPS estimates and a solid beat of analysts’ adjusted operating income estimates. It reported 1,129 boats sold, up 10.3% year on year.
Is Malibu Boats a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, analysts are expecting Malibu Boats’s revenue to decline 9.4% year on year to $181.4 million, a further deceleration from the 5.1% decrease it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.02 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 twice 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. Brunswick delivered year-on-year revenue growth of 15.5%, beating analysts’ expectations by 10.3%, and Polaris reported revenues up 9%, topping estimates by 6.8%. Brunswick traded down 4.7% following the results while Polaris was also down 4.2%.
Read our full analysis of Brunswick’s results here and Polaris’s results here.
Investors in the consumer discretionary segment have had fairly steady hands going into earnings, with share prices down 1.4% on average over the last month. Malibu Boats is up 14% during the same time and is heading into earnings with an average analyst price target of $34.83 (compared to the current share price of $34.07).
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