Boat shares rise after encouraging results
30/01/2025 19:32
** Shares of OneWater Marine ONEW.O up 13.2% at $17.37 on
Thurs after recreational boat seller's fiscal Q1 results top
Wall Street estimates
** Buford, Georgia-based firm early Thurs posted rev increase of
3% y/y to $375.8 mln and adj loss/sh of 54 cents. Analysts had
called for rev of $338.6 mln and loss of 84 cents, per LSEG
** CEO Austin Singleton said co remains "cautiously optimistic"
on remainder of 2025, pointing to its lower inventory levels and
ongoing cost reduction initiatives
** Co stuck with 2025 guidance for rev of $1.7-$1.85 bln and
adj earnings/sh of $1-$2
** Meanwhile, shares of recreational power-boat maker Malibu
Boats MBUU.O up 5.4% at $40.53 on the session after its fiscal
Q2 results beat expectations
** Loudon, Tennessee-based co early Thurs said sales decreased
5% y/y to $200.3 mln while adj EPS fell 46% to 31 cents. But
that topped consensus views of sales of $191.5 mln and adj EPS
of 21 cents
** Its CEO Steve Menneto cited a challenging marine environment
in the qtr, adding while retail softness persists, especially in
its saltwater markets, co will maintain "disciplined channel
inventory levels and prudent production" heading into second
half of the fiscal year
** Regarding 2025 outlook, MBUU anticipates net sales
percentage to be flat to down low-single-digits y/y and adj
EBITDA margin of ~10%
** Also on Thurs, recreational boat retailer MarineMax Inc's
HZO.N shares up 6%, potentially on a positive read-through
** With moves on the session, ONEW and MBUU off ~31% and
~5%, respectively, over the past year, while HZO up 10% in same
time frame
(Lance Tupper is a Reuters market analyst. The views expressed
are his own)
((lance.tupper@tr.com 1-646-279-6380))