Malibu Boats Gears up to Report Q4 Earnings: What to Expect?

Core Viewpoint - Malibu Boats, Inc. (MBUU) is expected to report a significant decline in both earnings and net sales for the fourth quarter of fiscal 2024, with a challenging retail environment impacting performance [1][2][3]. Financial Performance - In the last reported quarter, MBUU's earnings exceeded the Zacks Consensus Estimate by 37%, while net sales fell short by 1.2%, with year-over-year declines of 45.8% in sales and 75.7% in earnings [1]. - The Zacks Consensus Estimate for the fiscal fourth-quarter loss per share has widened to 31 cents from 29 cents, indicating a 110.4% decline from the prior-year quarter [2]. - The estimated net sales for the fourth quarter is projected at $155.4 million, reflecting a 58.3% decrease from $372.3 million reported in the same quarter last year [2]. Segment Performance - The expected net sales for Malibu, Saltwater Fishing, and Cobalt segments are $45.5 million, $67.2 million, and $50.4 million, respectively, down from $160.3 million, $128.7 million, and $83.3 million reported a year ago [4]. Factors Influencing Performance - The decline in MBUU's top line is attributed to reduced unit volumes across all segments, decreased wholesale shipments, and increased dealer flooring program costs, compounded by a weakened retail demand environment [3][5]. - The ongoing inflationary environment is expected to negatively impact the bottom line due to lower net sales and associated costs, with margins affected by fixed-cost deleverage [5]. Earnings Prediction - The Zacks model indicates that MBUU is not expected to achieve an earnings beat this quarter, lacking the necessary combination of a positive Earnings ESP and a favorable Zacks Rank [6]. - Currently, MBUU holds a Zacks Rank of 5 (Strong Sell) [7].