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Leisure Products Stocks Q1 In Review: Malibu Boats (NASDAQ:MBUU) Vs Peers


Anthony Lee /
2024/07/03 5:24 am EDT

Quarterly earnings results are a good time to check in on a company’s progress, especially compared to its peers in the same sector. Today we are looking at Malibu Boats (NASDAQ:MBUU) and the best and worst performers in the leisure products industry.

Leisure products cover a wide range of goods in the consumer discretionary sector. Maintaining a strong brand is key to success, and those who differentiate themselves will enjoy customer loyalty and pricing power while those who don’t may find themselves in precarious positions due to the non-essential nature of their offerings.

The 16 leisure products stocks we track reported a slower Q1; on average, revenues beat analyst consensus estimates by 4.3%. while next quarter's revenue guidance was 3.5% below consensus. Valuation multiples for many growth stocks have not yet reverted to their early 2021 highs, but the market was optimistic at the end of 2023 due to cooling inflation. The start of 2024 has been a different story as mixed signals have led to market volatility, and leisure products stocks have had a rough stretch, with share prices down 5.5% on average since the previous earnings results.

Malibu Boats (NASDAQ:MBUU)

Founded in California in 1982, Malibu Boats (NASDAQ:MBUU) is a manufacturer of high-performance sports boats and luxury watercrafts.

Malibu Boats reported revenues of $203.4 million, down 45.8% year on year, falling short of analysts' expectations by 1.5%. It was a weak quarter for the company, with a miss of analysts' boats sold estimates.

“In the fiscal third quarter, we continued to navigate a softened retail demand environment, with notable weakness in the tow boat and value boat markets. Despite this challenge, we are encouraged by pockets of strength we are seeing across Cobalt and Pursuit, showcasing resiliency within certain segments of our portfolio,” commented Jack Springer, Chief Executive Officer of Malibu Boats,

Malibu Boats Total Revenue

Malibu Boats delivered the slowest revenue growth of the whole group. The stock is up 1.2% since the results and currently trades at $33.46.

Read our full report on Malibu Boats here, it's free.

Best Q1: Smith & Wesson (NASDAQ:SWBI)

With a history dating back to 1852, Smith & Wesson (NASDAQ:SWBI) is a firearms manufacturer known for its handguns and rifles.

Smith & Wesson reported revenues of $159.1 million, up 9.9% year on year, outperforming analysts' expectations by 1.5%. It was a strong quarter for the company, with an impressive beat of analysts' earnings estimates.

Smith & Wesson Total Revenue

The stock is down 13.2% since the results and currently trades at $14.25.

Is now the time to buy Smith & Wesson? Access our full analysis of the earnings results here, it's free.

Weakest Q1: Ruger (NYSE:RGR)

Founded in 1949, Ruger (NYSE:RGR) is an American manufacturer of firearms for the commercial sporting market.

Ruger reported revenues of $136.8 million, down 8.5% year on year, falling short of analysts' expectations by 10.8%. It was a weak quarter for the company. Its revenue, operating margin, and EPS fell short of Wall Street's estimates.

Ruger had the weakest performance against analyst estimates in the group. The stock is down 10.2% since the results and currently trades at $41.6.

Read our full analysis of Ruger's results here.

YETI (NYSE:YETI)

Founded by two brothers from Texas, YETI (NYSE:YETI) specializes in durable outdoor goods including coolers, drinkware, and other gear tailored to adventure enthusiasts.

YETI reported revenues of $341.4 million, up 12.7% year on year, surpassing analysts' expectations by 2.4%. It was a strong quarter for the company, with an impressive beat of analysts' earnings estimates and strong earnings guidance for the full year.

YETI delivered the fastest revenue growth among its peers. The stock is up 6.7% since the results and currently trades at $37.2.

Read our full, actionable report on YETI here, it's free.

Peloton (NASDAQ:PTON)

Started as a Kickstarter campaign, Peloton (NASDAQ: PTON) is a fitness technology company known for its at-home exercise equipment and interactive online workout classes.

Peloton reported revenues of $717.7 million, down 4.2% year on year, in line with analysts' expectations. It was a weak quarter for the company, with a miss of analysts' earnings estimates.

The stock is up 4.5% since the results and currently trades at $3.38.

Read our full, actionable report on Peloton here, it's free.

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