The upcoming report from Malibu Boats (MBUU) is expected to reveal quarterly earnings of $0.67 per share, indicating an increase of 6.4% compared to the year-ago period. Analysts forecast revenues of $223.38 million, representing an increase of 9.8% year over year.Over the last 30 days, there has been a downward revision of 4.2% in the consensus EPS estimate for the quarter, leading to its current level. This signifies the covering analysts' collective reconsideration of their initial forecasts over the cou ...

Core Viewpoint - Malibu Boats, Inc. is set to release its third quarter fiscal 2025 financial results on May 8, 2025, before market opening, followed by a conference call with management to discuss the results [1]. Company Overview - Malibu Boats, Inc. is based in Loudon, Tennessee, and is a leading designer, manufacturer, and marketer of a diverse range of recreational powerboats, including performance sport, sterndrive, and outboard boats [3]. - The company holds a market leadership position in the performance sport boat category through its Malibu and Axis brands, and leads the 20' - 40' segment of the sterndrive boat category with its Cobalt brand [3]. - Malibu Boats is also a key player in the saltwater fishing boat market with brands such as Pursuit, Cobia, Pathfinder, Maverick, and Hewes [3]. - The company is recognized as an innovator in the powerboat industry, designing products that cater to a growing demographic of recreational boaters, fishermen, and water sports enthusiasts [3].

Core Viewpoint - The market anticipates Malibu Boats (MBUU) to report a year-over-year increase in earnings driven by higher revenues for the quarter ended March 2025, with actual results being crucial for stock price movement [1][2]. Earnings Expectations - The consensus EPS estimate for Malibu Boats is $0.67 per share, reflecting a year-over-year increase of +6.4%, while revenues are projected at $223.9 million, up 10.1% from the previous year [3]. Estimate Revisions - Over the last 30 days, the consensus EPS estimate has been revised down by 4.18%, indicating a reassessment by analysts [4]. Earnings Surprise Prediction - The Zacks Earnings ESP model suggests that the Most Accurate Estimate for Malibu Boats is higher than the consensus estimate, resulting in a positive Earnings ESP of +10.04%, indicating a likelihood of beating the consensus EPS estimate [10][11]. Historical Performance - In the last reported quarter, Malibu Boats exceeded the expected earnings of $0.21 per share by delivering $0.31, resulting in a surprise of +47.62%. The company has beaten consensus EPS estimates three out of the last four quarters [12][13]. Investment Considerations - While a potential earnings beat is a positive indicator, other factors may influence stock performance, making it essential to consider the broader context beyond just earnings results [14][16].

Core Viewpoint - The article emphasizes the importance of value investing and highlights Malibu Boats (MBUU) as a strong value stock based on its financial metrics and rankings [2][4][7] Group 1: Value Investing Strategy - Value investing focuses on identifying companies that are undervalued by the market using fundamental analysis and established metrics [2] - Zacks has developed a Style Scores system to identify stocks with specific traits, particularly in the "Value" category [3] Group 2: Malibu Boats (MBUU) Financial Metrics - MBUU holds a Zacks Rank of 2 (Buy) and a Value grade of A, indicating strong potential as a value stock [4] - The stock has a P/E ratio of 12.13, significantly lower than the industry average of 30.77, suggesting it is undervalued [4] - MBUU's P/S ratio is 1.02, which is comparable to the industry average of 1.03, indicating solid sales performance [5] - The P/CF ratio for MBUU is 18.89, which is attractive compared to the industry's average of 28.41, reflecting a strong cash outlook [6] - Over the past 52 weeks, MBUU's P/CF has ranged from 8.21 to 22.01, with a median of 11.37, further supporting its undervaluation [6] Group 3: Investment Outlook - The combination of MBUU's financial metrics and strong earnings outlook positions it as a compelling value stock at the moment [7]

Group 1 - Malibu Boats, Inc. reported fiscal Q2 results for late-2024, exceeding expectations with a smaller decline than anticipated, leading to an initial increase in stock price [1] - The company is focused on small cap investments, emphasizing the importance of understanding financial drivers and utilizing DCF model valuation to identify mispriced securities [1] Group 2 - The investment philosophy of the company encompasses a broad approach, not confined to traditional value, dividend, or growth investing, but rather assessing all prospects to determine risk-to-reward [1]

Core Viewpoint - Malibu Boats, Inc. (MBUU) reported second-quarter fiscal 2025 results with earnings and revenues exceeding the Zacks Consensus Estimate, although both metrics declined year-over-year [1][3]. Financial Performance - Adjusted earnings per share (EPS) for the fiscal second quarter were 31 cents, surpassing the Zacks Consensus Estimate of 21 cents, down from 57 cents in the prior-year quarter [3]. - Quarterly revenues reached $200.3 million, exceeding the Zacks Consensus Estimate of $191 million by 5.1%, but reflecting a 5.1% decline year-over-year due to lower unit volumes in the Malibu and Saltwater Fishing segments [4]. - The Malibu segment's net sales decreased 3% year-over-year to $74.1 million, while the Saltwater Fishing segment saw a 15.2% decline to $70.2 million, primarily due to reduced wholesale shipments [5]. - Conversely, revenues from the Cobalt segment increased 7.8% year-over-year to $56 million, driven by higher unit sales and inflation-related price increases [6]. Operating Highlights - Selling and marketing expenses rose 6.7% year-over-year to $6 million, accounting for 3.0% of sales, an increase of 30 basis points [7]. - General and administrative expenses surged to $26.5 million from $15.4 million in the prior-year quarter, influenced by legal fees and compensation costs [8]. - Operating income fell to $3.2 million from $14.7 million year-over-year, while adjusted EBITDA decreased to $16.9 million from $22.9 million, with an adjusted EBITDA margin of 8.4% compared to 10.9% in the previous year [9]. Balance Sheet - As of December 31, 2024, cash totaled $35.1 million, up from $26.9 million on June 30, 2024, while inventory slightly decreased to $144.9 million from $145.6 million [10]. - Long-term debt stood at $23 million as of December 31, 2024 [11]. Fiscal Outlook - For fiscal 2025, the company anticipates net sales to be flat to down low single digits year-over-year, with an expected adjusted EBITDA margin of approximately 10% [12].

Core Viewpoint - Malibu Boats reported quarterly earnings of $0.31 per share, exceeding the Zacks Consensus Estimate of $0.21 per share, but down from $0.57 per share a year ago, indicating a 47.62% earnings surprise [1] - The company generated revenues of $200.28 million for the quarter, surpassing the Zacks Consensus Estimate by 5.10%, although this represents a decline from $211.07 million year-over-year [2] Earnings Performance - Over the last four quarters, Malibu Boats has surpassed consensus EPS estimates three times, demonstrating a positive trend in earnings performance [2] - The recent earnings report reflects a significant surprise, with a previous expectation of a loss of $0.15 per share turning into an actual earnings of $0.08, resulting in a 153.33% surprise [1] Future Outlook - The sustainability of the stock's price movement will largely depend on management's commentary during the earnings call and future earnings expectations [3] - Current consensus EPS estimate for the upcoming quarter is $0.94 on revenues of $238.35 million, and for the current fiscal year, it is $2.35 on revenues of $845.66 million [7] Industry Context - The Leisure and Recreation Products industry, to which Malibu Boats belongs, is currently ranked in the bottom 23% of over 250 Zacks industries, which may impact stock performance [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, suggesting that tracking these revisions could be beneficial for investors [5]

Financial Performance - Net sales for the three months ended December 31, 2024, were $200.28 million, a decrease of 5.4% compared to $211.07 million for the same period in 2023[13]. - Gross profit for the six months ended December 31, 2024, was $65.63 million, down 30.4% from $94.27 million in the same period of 2023[13]. - Operating income for the three months ended December 31, 2024, was $3.18 million, a significant decline from $14.71 million in the same period of 2023[13]. - Net income attributable to Malibu Boats, Inc. for the three months ended December 31, 2024, was $2.36 million, compared to $9.88 million for the same period in 2023, representing a decrease of 76.1%[13]. - The company reported a comprehensive loss of $0.36 million for the three months ended December 31, 2024, compared to a comprehensive income of $11.57 million for the same period in 2023[13]. - The net loss for the six months ended December 31, 2024, was $2,726,000, compared to a net income of $30,914,000 for the same period in 2023[23]. - Adjusted EBITDA for the six months ended December 31, 2024, was $26.8 million, compared to $61.9 million for the same period in 2023[152]. - Basic net income per share for the three months ended December 31, 2024, was $0.12, a decrease from $0.49 in the same period of 2023[83]. - Diluted net income per share for the three months ended December 31, 2024, was also $0.12, compared to $0.49 for the same period in 2023[83]. Assets and Liabilities - Total current assets increased to $206.45 million as of December 31, 2024, compared to $202.13 million as of June 30, 2024[15]. - Total liabilities increased to $224.27 million as of December 31, 2024, from $204.91 million as of June 30, 2024[15]. - Cash balance as of December 31, 2024, was $35.12 million, an increase from $26.95 million as of June 30, 2024[15]. - The total stockholders' equity as of December 31, 2024, was $514,402,000[18]. - Outstanding debt as of December 31, 2024, was $23,000, with no term loan outstanding[49]. - The revolving credit facility has $325,272 available for borrowing as of December 31, 2024, with an interest rate of 7.75%[50][52]. Sales and Revenue Breakdown - Boat and trailer sales for the six months ended December 31, 2024, totaled $361.7 million, down from $456.9 million in the prior year, reflecting a decline of 20.8%[31]. - North America accounted for $190.6 million of consolidated net sales for the three months ended December 31, 2024, representing 95.2% of total sales[31]. - The company’s international sales for the three months ended December 31, 2024, were $9.7 million, accounting for 4.8% of total net sales[31]. - The Malibu segment reported net sales of $74.1 million for the three months ended December 31, 2024, down from $76.4 million in the same period of 2023[101]. - The Saltwater Fishing segment's net sales decreased to $70.2 million in Q4 2024 from $82.7 million in Q4 2023, representing a decline of 15.1%[101]. - The Cobalt segment achieved net sales of $56.0 million for the three months ended December 31, 2024, compared to $52.0 million in the same period of 2023, marking an increase of 7.4%[101]. Expenses and Costs - Non-cash compensation expense increased to $4,033,000 in 2024 from $1,323,000 in 2023[23]. - Depreciation expenses rose to $15,198,000 in 2024, up from $12,667,000 in 2023[23]. - General and administrative expenses increased by $11.1 million, or 71.9%, to $26.5 million for the three months ended December 31, 2024[133]. - General and administrative expenses increased by $17.6 million, or 48.8%, to $53.8 million for the six months ended December 31, 2024, primarily due to legal settlements and increased compensation expenses[145]. - Cost of sales for the three months ended December 31, 2024, decreased by $10.7 million, or 6.2%, to $162.9 million compared to the same period in 2023[131]. - Gross profit decreased by $28.6 million, or 30.4%, to $65.6 million for the six months ended December 31, 2024, with gross margin decreasing from 20.2% to 17.6%[144]. Legal and Compliance Matters - The company is involved in multiple legal proceedings, including a securities class action alleging violations of the Securities Exchange Act of 1934[95][96]. - The company entered into a Settlement Agreement to pay $3.5 million to the Tommy's Boats estate, contingent upon certain conditions being met[94]. - The company maintains liability insurance with coverage up to $26,000 related to the Batchelder Matters, having received approximately $21,000 in insurance proceeds as of December 31, 2024[93]. - The company continues to pursue claims against insurance carriers to recover the full $100,000 settlement amount related to the Batchelder Matters[93]. Future Outlook and Strategy - Malibu Boats, Inc. continues to face challenges including increased costs and reliance on third-party suppliers, impacting future performance expectations[10]. - The company anticipates a continued decline in the retail market for fiscal 2025 due to high dealer flooring costs and a soft retail environment[112]. - The company aims to increase market share through new product development and improved distribution despite facing aggressive competition in the industry[113]. - The company has over 400 dealer locations globally, with one dealer, OneWater Marine, representing more than 10% of consolidated net sales in fiscal year 2024[109]. Stock and Shareholder Information - The company repurchased and retired Class A Common Stock amounting to $20,199,000 during the six months ended December 31, 2024[23]. - As of December 31, 2024, Malibu Boats had $50.0 million available for share repurchases under the 2024 Repurchase Program[35]. - The company has authorized a stock repurchase program for up to $100.0 million of its Class A Common Stock and LLC Units from November 8, 2023, to November 8, 2024[171]. - The company repurchased 240,981 shares of Class A Common Stock for $10.1 million during the three months ended December 31, 2024[170].

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Financial Performance - Net sales for Q2 FY2025 decreased by 5.1% to $200.3 million compared to Q2 FY2024[4] - Unit volume for Q2 FY2025 decreased by 11.0% to 1,222 units compared to Q2 FY2024[4] - GAAP net income for Q2 FY2025 decreased by 76.1% to $2.4 million compared to $10.1 million in Q2 FY2024[4] - Adjusted EBITDA for Q2 FY2025 decreased by 26.3% to $16.9 million compared to $22.9 million in Q2 FY2024[4] - Operating income for Q2 FY2025 decreased to $3.2 million from $14.7 million in Q2 FY2024[13] - Net income for the three months ended December 31, 2024, was $2,421,000, compared to $10,144,000 for the same period in 2023, reflecting a decrease of 76.1%[32] - Adjusted EBITDA for the six months ended December 31, 2024, was $26,785,000, down 56.8% from $61,918,000 in the prior year[32] - The net income margin for the six months ended December 31, 2024, was (0.7)%, down from 6.6% in 2023[32] Sales and Revenue - Net sales attributable to the Saltwater Fishing segment decreased by 15.2% to $70.2 million in Q2 FY2025[7] - Net sales per unit for the Malibu segment increased by 12.0% to $141,141 per unit in Q2 FY2025[9] - Net sales for the three months ended December 31, 2024, were $200,280,000, a decrease from $211,074,000 in the same period of 2023, representing a decline of about 5%[28] - Net sales for the three months ended December 31, 2024, were $200,280,000, a decrease of 5.8% compared to $211,074,000 in 2023[32] Expenses and Costs - General and administrative expenses increased by 71.9% to $26.5 million in Q2 FY2025 compared to Q2 FY2024[12] - The company reported a litigation settlement expense of $3,500,000 for the six months ended December 31, 2024[32] - The company incurred professional fees of $2,035,000 for the three months ended December 31, 2024, compared to $290,000 in the same period of 2023[36] Guidance and Outlook - Full-year guidance for FY2025 anticipates net sales to be flat to down low single digits year-over-year[14] - The company anticipates ramping up production in the third fiscal quarter of 2025, indicating a positive outlook for future performance[24] Assets and Cash Position - Total assets as of December 31, 2024, were $738,676,000, slightly down from $739,624,000 as of June 30, 2024[29] - Cash increased to $35,118,000 as of December 31, 2024, from $26,945,000 as of June 30, 2024, reflecting an increase of approximately 30%[30] Risks and Legal Matters - The company faces risks including reliance on third-party suppliers and potential disruptions in operations, which could impact future performance[25] - The company is awaiting a decision from the Bankruptcy Court regarding claims related to Tommy's Boats, which may impact future financial obligations[33]