Recreational boats manufacturer Malibu Boats (NASDAQ:MBUU) will be reporting results tomorrow morning. Here’s what to expect.
Malibu Boats beat analysts’ revenue expectations by 1.1% last quarter, reporting revenues of $158.7 million, down 57.4% year on year. It was a softer quarter for the company, with a miss of analysts’ EBITDA and earnings estimates. It reported 1,045 total units, down 59% 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 34.6% year on year to $167.3 million, a further deceleration from the 15.3% decrease it recorded in the same quarter last year. Adjusted loss is expected to come in at -$0.08 per share.
The majority of analysts covering the company have 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 Q3 results, giving us a hint as to what we can expect. Harley-Davidson’s revenues decreased 25.7% year on year, beating analysts’ expectations by 17.9%, and Brunswick reported a revenue decline of 20.1%, falling short of estimates by 1.3%. Harley-Davidson traded down 6.8% following the results while Brunswick was up 5%.
Read our full analysis of Harley-Davidson’s results here and Brunswick’s results here.
Investors in the consumer discretionary segment have had steady hands going into earnings, with share prices up 1.4% on average over the last month. Malibu Boats is up 8.8% during the same time and is heading into earnings with an average analyst price target of $41.50 (compared to the current share price of $42.36).
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