MarineMax (HZO) Q1 Earnings: What Can You Expect?

in EARNINGS/INVESTING IDEAS by

MarineMax, Inc. (NYSE:HZO) is scheduled to report Q1 earnings results on Thursday, January 23, 2020, before markets open for trading. Management will hold a webcast to review its first quarter of fiscal 2020 results on Thursday, January 23, 2020, at 10:00 a.m. Eastern Time.

The company is expected to report earnings of $0.10/share on revenue of $260.8 million. The consensus earnings per share (EPS) of $0.10/share is based on a poll of 8 analysts and represents a decline of -52.6% over the same quarter last year when the company reported earnings of $0.21/share.

The revenue forecast of $260.8 million based on a poll of 6 analysts implies a year-over-year (YoY) growth of 7.8%. Last year the company reported $241.9 million in revenue for the quarter.

Expected to report EPS decline of -$0.11/share for Q1, 2019
Metric Expected Prior Year YoY Change
Revenue $260.80 $241.94 7.8%
EPS $0.10 $0.21 -52.6%

Earnings Call Trends

Historically, management has exceeded analyst expectations 7 out of the last 8 tracked quarters, and missed expectations 1 quarter.

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

Analyst Expected vs. Reported EPS
Quarter Expected Reported Surprise Result
Q4, 2019 $0.36 $0.38 4.6% Beat
Q3, 2019 $0.83 $0.84 1.2% Beat
Q2, 2019 $0.31 $0.23 -25.9% Missed
Q1, 2019 $0.16 $0.21 31.3% Beat
Q4, 2018 $0.23 $0.45 91.5% Beat
Q3, 2018 $0.78 $0.79 1.2% Beat
Q2, 2018 $0.16 $0.25 56.3% Beat
Q1, 2018 -$0.02 $0.23 NM 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 -15.1%.

Stock Price Performance After Earnings
Report Date Price Day Prior Price Next Day Change % Result
2019-10-29 $18.16 $15.41 -15.1% Decline
2019-07-25 $15.37 $15.41 0.3% Increase
2019-04-25 $19.82 $16.53 -16.6% Decline
2019-01-23 $19.63 $18.40 -6.3% Decline

Fundamentals And Technical Analysis

MarineMax is currently trading at $17.85/share, up 0.5% for the day. The company is trading at approximately 87.2% of its 52-week high of $20.46/share. The company’s stock price is up 15.8% since the last earnings report and up 8.6% over the previous week.

The company’s 14 Day Relative Price Index (RSI) of 69.62 suggests the company is trading in technically neutral territory. The RSI is considered overbought when above 70 and oversold when below 30.

NYSE:HZO Stock Price Chart Source: Finbox

The current share price implies a price-to-earnings (P/E) multiple of 10.7x and a forward P/E multiple of 10.6x.

MarineMax’s current share price also implies a price-to-book (P/B) multiple of 1.0x. The following table summarizes some other key fundamental ratios:

Data as of January 20, 2020
Metric Value
Last Fiscal Period FY2019.Q4
Period End Date September 30, 2019
Stock Price (Current) $17.85
P/E Ratio 10.7x
P/E Ratio (Fwd) 10.6x
PEG Ratio 1.4
Total Debt to Capital (%) 44.8%
Levered Free Cash Flow -$29.487 million
Enterprise Value / EBITDA 8.7x

Source: Finbox

Company Profile: MarineMax, Inc.

MarineMax, Inc. is a small-cap stock with a market capitalization of $383.8 million and a total enterprise value of $657.3 million. The company operates in the Consumer Discretionary sector and the Specialty Retail industry.

MarineMax operates as a recreational boat and yacht retailer in the United States. The company sells new and used recreational boats, including pleasure boats, such as sport boats, sport cruisers, sport yachts, and other yachts; fishing boats; motor and convertible yachts; pontoon boats; fishing boats; ski boats; and jet boats.

The company also provides marine parts and accessories comprising marine electronics; dock and anchoring products that include boat fenders, lines, and anchors; boat covers; trailer parts; water sport accessories, which comprise tubes, lines, wakeboards, and skis; engine parts; oils; lubricants; steering and control systems; corrosion control products and service products; high-performance accessories, including propellers and instruments; and a line of boating accessories, such as life jackets, inflatables, and water sports equipment.

The company offers novelty items, such as shirts, caps, and license plates; marine engines and equipment; maintenance, repair, and slip and storage accommodation services; and boat or yacht brokerage services, as well as charters power yachts. Further, it provides new or used boat finance services; and arranges insurance coverage, including boat property, disability, undercoating, gel sealant, fabric protection, and casualty insurance coverage.

As of November 11, 2019, the company had 59 retail locations in Alabama, Connecticut, Florida, Georgia, Maryland, Massachusetts, Minnesota, Missouri, New Jersey, New York, North Carolina, Ohio, Oklahoma, Rhode Island, South Carolina, and Texas. Additionally, operates vacations in Tortola, British Virgin Islands.

The company also markets and sells its products through offsite locations, print catalog, and the Internet.

MarineMax, Inc. was founded in 1998 and is headquartered in Clearwater, Florida.

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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