On Tuesday, Malibu Boats Inc. reported decreased earnings and revenue for their Q2 results when compared to the same quarter last year. This is largely attributed to weak retail demand. However, they did surpass the estimates made by analysts.
Additionally, the company has updated their financial expectations for the fiscal year 2024.
This news triggered a decline of roughly 8% in the value of Malibu Boats shares in pre-market trading.
Earnings for the quarter dipped to $9.88 million or $0.49 per share, a significant drop from the previous year's $35.16 million or $1.72 per share. This decrease was due to a lack of retail demand and ongoing pressure from interest rates.
Adjusted earnings, which exclude certain factors, were reported at $11.99 million or $0.57 per share. In comparison, the prior year saw adjusted earnings of $38.83 million or $1.83 per share.
A poll by Thomson Reuters estimated an average earnings of $0.47 per share for the quarter. These predictions usually exclude extraordinary items.
Net revenue also saw a decline of 37.7% totaling $211.07 million, a significant decrease from $338.73 million the previous year. This decline is ascribed to a drop in unit quantities across all sectors due to weak retail demand.
Analysts estimated the revenue to be around $219.7 million.
Looking towards the entire fiscal year, the company anticipates an adjusted EBITDA margin drop of 800 to 900 basis points, year over year. This changes the previous projection of a 350 to 450 basis point drop.
Moreover, the current expectation for net sales indicates a mid-to-high thirties percentage decrease, year over year. This is a deviation from the previous revenue guidance of a high teens to low twenties decrease.
Analysts predict revenues to total $1.1 billion for the fiscal year.
In pre-market trade, shares of Malibu Boats are valued at $46.80, a decrease of 8.29% on the Nasdaq.
