Mastercraft Boat (NASDAQ:MCFT) Announces Earnings Results

Mastercraft Boat (NASDAQ:MCFT) posted its quarterly earnings results on Tuesday. The company reported $0.50 EPS for the quarter, topping the consensus estimate of $0.36 by $0.14, FiscalAI reports. Mastercraft Boat had a net margin of 1.57% and a return on equity of 13.42%. The firm had revenue of $154.14 million for the quarter, compared to the consensus estimate of $67.19 million.

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 Price Performance

NASDAQ MCFT opened at $21.26 on Thursday. The stock has a market capitalization of $514.92 million, a PE ratio of 81.77 and a beta of 1.10. Mastercraft Boat has a 1 year low of $17.19 and a 1 year high of $28.44. The business’s 50-day moving average is $20.41 and its 200 day moving average is $22.48.

Wall Street Analyst Weigh In

MCFT has been the topic of a number of analyst reports. B. Riley Financial reiterated a “neutral” rating and issued a $22.00 target price (down from $25.00) on shares of Mastercraft Boat in a research report on Wednesday, September 16th. Zacks Research upgraded shares of Mastercraft Boat from a “strong sell” rating to a “hold” rating in a research report on Monday. Robert W. Baird reduced their price objective on Mastercraft Boat from $30.00 to $26.00 and set a “neutral” rating on the stock in a research note on Friday, September 11th. Truist Financial decreased their price objective on Mastercraft Boat from $28.00 to $22.00 and set a “hold” rating on the stock in a report on Friday, October 23rd. Finally, Weiss Ratings raised Mastercraft Boat from a “sell (d+)” rating to a “hold (c-)” rating in a research note on Wednesday. Six investment analysts have rated the stock with a Hold rating. According to data from MarketBeat, the stock currently has a consensus rating of “Hold” and a consensus price target of $22.75.

About Mastercraft Boat

MasterCraft Boat Holdings, Inc. designs, manufactures and markets recreational powerboats. Its MasterCraft brand is known for performance boats used for waterskiing, wakeboarding and wakesurfing, while its Crest brand offers pontoon boats. The company’s roots date to 1968, when MasterCraft was founded in Tennessee. It serves customers through a network of dealers in the United States and international markets.