Mastercraft Boat (NASDAQ:MCFT) Issues Quarterly Earnings Results, Beats Estimates By $0.06 EPS

Mastercraft Boat (NASDAQ:MCFT) announced its earnings results on Tuesday. The company reported $0.50 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.44 by $0.06, FiscalAI reports. Mastercraft Boat had a negative net margin of 0.48% and a positive return on equity of 11.08%.

Here are the key takeaways from Mastercraft Boat’s conference call:

• MasterCraft raised its six-month transition-period guidance after Q1 results exceeded expectations, now forecasting net sales of $293 million–$297 million, Adjusted EBITDA of $32 million–$34 million, and adjusted EPS of $0.75–$0.80.
• Legacy net sales grew 37.4%, while legacy gross margin expanded 600 basis points to 28.3% and Adjusted EBITDA margin rose 750 basis points to 17.6%. Management attributed the gains to higher volumes, favorable product mix, lower discounts, and operating improvements.
• The company said integration of Chaparral and Robalo is progressing, with about $6 million in annual public-company and overhead savings already captured and further sourcing, operations, footprint, and distribution initiatives underway. Management also highlighted dealer additions and strength in Robalo retail and market share.
• Management described consumers as cautious and expects the overall market to decline roughly 5%–10% for the calendar year; it also anticipates modestly lower sequential shipments in the December quarter due to fewer production days. Executives said discounting remains part of a competitive ski/wake market, though they characterized promotions as relatively normal.

Mastercraft Boat Stock Performance

NASDAQ:MCFT traded down $0.05 during trading hours on Tuesday, reaching $20.45. The company’s stock had a trading volume of 71,038 shares, compared to its average volume of 168,661. The firm has a market capitalization of $495.20 million, a price-to-earnings ratio of -1,021.79 and a beta of 1.10. The firm has a 50-day simple moving average of $20.52 and a 200-day simple moving average of $22.49. Mastercraft Boat has a 1 year low of $17.19 and a 1 year high of $28.44.

Analysts Set New Price Targets

MCFT has been the topic of a number of research reports. B. Riley Financial restated a “neutral” rating and set a $22.00 price target (down from $25.00) on shares of Mastercraft Boat in a research report on Wednesday, September 16th. Wall Street Zen upgraded Mastercraft Boat to a “hold” rating in a report on Saturday, October 10th. Weiss Ratings lowered Mastercraft Boat from a “hold (c)” rating to a “sell (d+)” rating in a research report on Friday, September 11th. Truist Financial reduced their price objective on Mastercraft Boat from $28.00 to $22.00 and set a “hold” rating on the stock in a research report on Friday, October 23rd. Finally, Robert W. Baird decreased their price objective on Mastercraft Boat from $30.00 to $26.00 and set a “neutral” rating on the stock in a report on Friday, September 11th. Four research analysts have rated the stock with a Hold rating and two have assigned a Sell rating to the company’s stock. According to data from MarketBeat, the stock currently has an average rating of “Reduce” and a consensus target price of $22.75.

Mastercraft Boat Company Profile

MasterCraft Boat Holdings, Inc designs, manufactures and sells recreational powerboats. The company serves the premium marine market with boats intended for water sports, cruising, fishing and general leisure use.

Its portfolio has included MasterCraft performance ski and wake boats, Crest pontoon boats and Aviara luxury day boats. MasterCraft boats are known for water-sports features such as wake-shaping systems, while the company’s other brands address broader recreational boating needs, including spacious pontoon and luxury day-boat segments.

Founded in 1968, MasterCraft is headquartered in Vonore, Tennessee, and distributes its products through a network of independent dealers in North America and selected international markets.