Q1 Earnings Preview for Malibu Boats (NasdaqGM:MBUU)

in EARNINGS/INVESTING IDEAS by

Malibu Boats, Inc. (NasdaqGM:MBUU) is scheduled to report Q1 earnings results before markets open for trading on November 6, 2020.

The company is expected to report earnings of $0.88/share on revenue of $178.9 million. The consensus earnings per share (EPS) of $0.88/share is based on a poll of 7 analysts and represents a growth in eps of 6.5% over the same quarter last year, when the company reported earnings of $0.83/share.

The revenue forecast of $178.9 million based on a poll of 7 analysts implies a year-over-year (YoY) growth in revenue of 4.0%. Last year the company reported $172.1 million in revenue for the quarter.

Expected to report EPS growth of 6.5% for Q1, 2021
Metric Expected Prior Year YoY Change
Revenue $178.94 $172.08 4.0%
EPS $0.88 $0.83 6.5%

Earnings Call Trends

Management has been great at managing analyst expectations historically. The company has a perfect record over the last 8 tracked quarters of exceeding earnings guidance.

What are your expectations from Malibu Boats, Inc. for earnings this quarter? Let us know in the comments!

Analyst Expected vs. Reported EPS
Quarter Expected Reported Surprise Result
Q4, 2020 $0.12 $0.40 233.3% Beat
Q3, 2020 $0.98 $1.13 14.8% Beat
Q2, 2020 $0.68 $0.93 35.9% Beat
Q1, 2020 $0.70 $0.83 18.9% Beat
Q4, 2019 $0.95 $1.08 13.5% Beat
Q3, 2019 $1.04 $1.15 10.4% Beat
Q2, 2019 $0.74 $0.86 16.9% Beat
Q1, 2019 $0.54 $0.67 24.1% 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 June 30, 2020, the stock price did not react much to the update.

Stock Price Performance After Earnings
Report Date Price Day Prior Price Next Day Change % Result
August 27, 2020 $55.50 $55.32 −0.3% Decline
May 7, 2020 $34.12 $39.40 15.5% Increase
February 6, 2020 $46.66 $47.56 1.9% Increase
November 7, 2019 $33.72 $37.83 12.2% Increase

The other question to consider is one of earnings manipulation. There is a lot of pressure on management each quarter to deliver on earnings expectations. The Beneish M-Score is a statistical model that provides some insight into whether the company might be manipulating earnings. With a Beneish M-Score of −3.23, the model suggests that the company is not likely to be an earnings manipulator. A value of −3.23 implies a 0.1% chance of earnings manipulation.

Fundamentals And Technical Analysis

Malibu Boats, Inc. is currently trading at $50.83/share, down −3.3% for the day. The company is trading at approximately 79.6% of its 52-week high of $63.88/share. The company’s stock price is down −8.1% since the last earnings report and down −4.6% over the previous week. The company’s 14 Day Relative Price Index (RSI) of 45.70 suggests the company is trading in technically neutral territory. The RSI is considered overbought when above 70 and oversold when below 30.


NasdaqGM:MBUU Stock Price Chart
Source: Finbox

The current share price implies a price-to-earnings (P/E) multiple of 17.03 and a forward P/E multiple of 11.31.

Malibu Boats, Inc.’s current share price also implies a price-to-book (P/B) multiple of 4.26. The following table summarizes some other key fundamental ratios:

Data as of November 1, 2020
Metric Value
Last Reported Fiscal Period Key FY2020.Q4
Period End Date June 30, 2020
Stock Price (Current) $50.83
P/E Ratio 17.0x
P/E Ratio (Fwd) 11.3x
PEG Ratio −2.8
Total Debt / Total Capital 8.1%
Levered Free Cash Flow $52.85 million
EV / EBITDA 10.4x

Finbox

Malibu Boats, Inc. is a small-cap stock with a market capitalization of $1.049 billion and a total enterprise value of $1.121 billion. The company operates in the Consumer Discretionary sector and the Leisure Products industry.

Malibu Boats, Inc. designs, manufactures, distributes, markets, and sells a range of recreational powerboats. It operates through three segments: Malibu, Cobalt, and Pursuit. The company offers performance sport boats, and sterndrive and outboard boats under the Malibu, Axis, Cobalt, and Pursuit brands. Its products are used for a range of recreational boating activities, including water sports, such as water skiing, wakeboarding, and wake surfing, as well as general recreational boating and fishing. It operates through a network of independent dealers in Europe, Asia, the Middle East, South America, South Africa, and Australia/New Zealand. The company was founded in 1982 and is based in Loudon, Tennessee.

Leave a Reply

This site uses Akismet to reduce spam. Learn how your comment data is processed.