Back to top

Image: Bigstock

Malibu Boats' Q4 Earnings Lag Estimates, Revenues Fall Y/Y

Read MoreHide Full Article

Malibu Boats, Inc. (MBUU - Free Report) reported mixed fourth-quarter fiscal 2024 results, with earnings missing the Zacks Consensus Estimate but revenues beating the same. However, both top and bottom lines declined on a year-over-year basis. Weak retail demand negatively impacted the company’s results in the quarter.

MBUU's Earnings & Revenues Details

In the fiscal fourth quarter, MBUU reported an adjusted loss per share (EPS) of 39 cents, wider than the Zacks Consensus Estimate of a loss of 31 cents. In the prior-year quarter, it reported adjusted EPS of $2.98.

Quarterly revenues of $158.7 million beat the Zacks Consensus Estimate of $155 million. The top line decreased 57.4% on a year-over-year basis. The decline in net sales was mainly caused by a drop in wholesale shipments. This was influenced by reduced retail activity during the period. Higher promotional expenses and increased inventory levels in dealer channels also contributed to the decrease.

Malibu Boats, Inc. Price, Consensus and EPS Surprise Malibu Boats, Inc. Price, Consensus and EPS Surprise

Malibu Boats, Inc. price-consensus-eps-surprise-chart | Malibu Boats, Inc. Quote

Malibu Boats' Segmental Performance

Net sales in the Malibu segment decreased 76.6% year over year to $37.5 million. The downside was caused by lower wholesale shipments.

Net sales in the Saltwater Fishing segment decreased 44.9% year over year to $71 million.

Revenues from the Cobalt segment declined 39.7% year over year to $50.2 million.

MBUU's Operating Highlights

Selling and marketing expenses declined 10.6% year over year to $4.9 million. The decline was due to the decrease in compensation, as well as boat shows and related events.

General and administrative expenses totaled $21.5 million compared with $118 million reported in the prior-year quarter.

Adjusted EBITDA came in at ($4.1) million compared with $90.1 million reported in the prior-year quarter.

Malibu Boats' Balance Sheet

Cash, as of June 30, 2024, totaled $26.9 million compared with $78.9 million as of June 30, 2023. Inventory was $145.6 million compared with $171.2 million reported in the prior-year period.

Fiscal 2025 Outlook for MBUU

Management expects net sales to increase in low single digit year over year. It forecast adjusted EBITDA margin to be in the range of 10-12%.

Malibu Boats currently has a Zacks Rank #5 (Strong Sell).

Key Picks

Here are some better-ranked stocks from the Zacks Consumer Discretionary sector.

Royal Caribbean Cruises Ltd. (RCL - Free Report) currently sports a Zacks Rank of 1 (Strong Buy). RCL has a trailing four-quarter earnings surprise of 18.5%, on average. The stock has rallied 68.7% in the past year. You can see the complete list of today’s Zacks Rank #1 stocks here.

The Zacks Consensus Estimate for RCL’s 2024 sales and earnings per share (EPS) indicates growth of 18.1% and 69.9%, respectively, from the year-ago levels.

DoubleDown Interactive Co., Ltd. (DDI - Free Report) currently flaunts a Zacks Rank of 1. DDI has a trailing four-quarter earnings surprise of 22.1%, on average. The stock has surged 42.1% in the past year. The Zacks Consensus Estimate for DDI’s 2024 sales and EPS indicates an increase of 12.6% and 15.8%, respectively, from the year-ago levels.

Monarch Casino & Resort, Inc. (MCRI - Free Report) carries a Zacks Rank #2 (Buy) at present. MCRI has a trailing four-quarter negative earnings surprise of 3.5%, on average. The stock has gained 11.4% in the past year. The Zacks Consensus Estimate for MCRI’s 2024 sales and EPS indicates an increase of 2.3% and 10%, respectively, from the year-ago levels.

Published in