Marinemax Inc. (NYSE:HZO) delivered a profit and missed Wall Street’s expectations, BUT beat the revenue expectation. The revenue beat is a positive sign to shareholders seeking high growth out of the company. Shares are up 11.94%.
Marinemax Inc. Earnings Cheat Sheet
Results: Adjusted Earnings Per Share increased 35% to $0.27 in the quarter versus EPS of $0.20 in the year-earlier quarter.
Revenue: Rose 16.14% to $175.76 million from the year-earlier quarter.
Actual vs. Wall St. Expectations: Marinemax Inc. reported adjusted EPS income of $0.27 per share. By that measure, the company missed the mean analyst estimate of $0.31. It beat the average revenue estimate of $171.04 million.
Quoting Management: William H. McGill, Jr., Chairman, President, and Chief Executive Officer, stated, “Our team produced solid revenue growth in the quarter despite the challenge of generally poor weather that impacted industry trends. This growth was driven by our team’s focus and commitment to providing our customers with the right products and experiences along with strength in key geographic markets, such as Florida and parts of the Northeast. During the quarter, our efforts resulted in product gross margin expansion, which was attributable to the ongoing industry recovery, continued improved inventory aging, and our team’s passion and focus on our brands and strategies. In our efforts to stimulate additional sales because of challenging weather, we invested in enhanced promotional activities, which combined with rising insurance costs, resulted in higher ongoing expenses.”
Mr. McGill concluded, “We remain well positioned to capitalize on improving industry conditions. Our balance sheet, which has been further enhanced by the Deepwater Horizon payment, provides us with a competitive advantage by enabling us to have the broadest available inventory in the industry for our customers to purchase. MarineMax customers are demonstrating their passion for improving their quality of life through the great boating experience our company is able to provide as they unite with themselves and others on the water. As we look ahead, improving conditions and pent up demand should continue to emerge and contribute to our ability to increase cash flow, market share and earnings.”
Key Stats (on next page)…
Revenue increased 9.84% from $160.01 million in the previous quarter. EPS increased 2600% from $0.01 in the previous quarter.
Looking Forward: Analysts have a neutral outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings is a loss of $0.01 and has not changed. For the current year, the average estimate has moved down from a profit of $0.2 to a profit of $0.14 over the last ninety days.
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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)