Marine Products (MPX) Q4 2019 Earnings Prep

in EARNINGS/INVESTING IDEAS by

Marine Products Corporation (NYSE:MPX) is scheduled to report Q4 earnings results on Wednesday, January 29, 2020, before the market opens. The earnings conference call is scheduled for the same morning at 8:00 a.m.

The company is expected to report earnings of $0.12/share on revenue of $60.079 million. The consensus earnings per share (EPS) of $0.12/share is based on a poll of 1 analyst.

The revenue forecast of $60.079 million based on a poll of 1 analyst implies a year-over-year (YoY) decline of -3.2%. Last year the company reported $62.062 million in revenue for the quarter.

Expected to report EPS of $0.12/share for Q4, 2019
Metric Expected Prior Year YoY Change
Revenue $60.08 $62.06 -3.2%
EPS $0.12 NM

Earnings Call Trends

Management has been great at managing analyst expectations historically. The company has a perfect record over the last 1 tracked quarter of exceeding earnings guidance.

What are your expectations from Marine Products for earnings this quarter? Let us know in the comments!

Analyst Expected vs. Reported EPS
Quarter Expected Reported Surprise Result
Q4, 2017 $0.12 $0.15 25.0% Beat

In the following table, we summarize the company’s stock price movements after earnings releases. The “Price Day Prior” column shows the closing stock price on the day before the earnings report, and the “Price Next Day” column shows the stock price at the end of the trading day after the earnings report.

After the last earnings report for the period ending September 30, 2019, the stock price reacted by falling by -2.1%.

Stock Price Performance After Earnings
Report Date Price Day Prior Price Next Day Change % Result
2019-10-23 $13.75 $13.46 -2.1% Decline
2019-07-24 $13.23 $14.12 6.7% Increase
2019-04-24 $14.06 $15.05 7.0% Increase
2019-01-23 $17.21 $14.63 -15.0% Decline

Fundamentals And Technical Analysis

Marine Products is currently trading at $14.05/share, down -1.3% for the day. The company is trading at approximately 76.2% of its 52-week high of $18.43/share. The company’s stock price is up 4.4% since the last earnings report and down -1.4% over the previous week.

The company’s 14 Day Relative Price Index (RSI) of 47.40 suggests the company is trading in technically neutral territory. The RSI is considered overbought when above 70 and oversold when below 30.

NYSE:MPX Stock Price Chart Source: Finbox

The current share price implies a price-to-earnings (P/E) multiple of 16.4x and a forward P/E multiple of 16.8x. Marine Products’ current share price also implies a price-to-book (P/B) multiple of 5.9x. The following table summarizes some other key fundamental ratios:

Data as of January 21, 2020
Metric Value
Last Fiscal Period FY2019.Q3
Period End Date September 30, 2019
Stock Price (Current) $14.05
P/E Ratio 16.4x
P/E Ratio (Fwd) 16.8x
PEG Ratio 4.3
Total Debt to Capital (%) 0.0%
Levered Free Cash Flow $30.409 million
Enterprise Value / EBITDA 12.1x

Source: Finbox

Company Profile: Marine Products Corporation

Marine Products Corporation is a small-cap stock with a market capitalization of $483.3 million and a total enterprise value of $460.4 million. The company operates in the Consumer Discretionary sector and the Leisure Products industry.

Marine Products Corporation designs, manufactures, and sells recreational fiberglass powerboats for the sportboat, deckboat, cruiser, jet boat, and sport fishing markets worldwide.

The company provides Chaparral sterndrive pleasure boats, including SSi and SSX sportboats, Sunesta sportdecks, Signature cruisers, SunCoast sportdeck outboards, Vortex jet boats, and the Surf Series, and Robalo outboard sport fishing boats, as well as H2O Sport, and Fish and Ski boats.

It sells its products to a network of 168 domestic and 86 international independent authorized dealers. The company was founded in 1965 and is based in Atlanta, Georgia.

Expertise: financial modeling, mergers & acquisitions. Andy is also a founder at finbox.io, where he’s focused on building tools that make it faster and easier for investors to do investment research. Andy’s background is in investment banking where he led the analysis on over 50 board advisory engagements involving mergers and acquisitions, fairness opinions and solvency opinions. Some of his board advisory highlights: - Sears Holdings Corp.’s $620 mm spin-off via rights offering of Sears Outlet, Hometown Stores and Sears Hardware Stores. - Cerberus Capital Management’s $3.3 bn acquisition of SUPERVALU Inc.’s New Albertsons, Inc. assets. Andy can be reached at andy@finbox.io or at +1 (516) 778-6257.

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