Why Malibu Boats (MBUU) Shares Are Falling Today

Jabin Bastian /
2024/01/30 10:45 am EST

What Happened:

Shares of recreational boats manufacturer Malibu Boats (NASDAQ:MBUU) fell 16.4% in the morning session after the company reported second-quarter results, which missed Wall Street's revenue expectations. Guidance was also worrisome, with the company anticipating revenue to be down "mid-to-high thirties percentage, year-over-year" compared to 2023, and below Wall Street's estimates. Lastly, management's commentary in the press release called out "weak retail demand," "elevated inventory levels," and "uncertainty" from the macroeconomic backdrop. On the other hand, Malibu Boats exceeded analysts' EPS and operating margin expectations during the quarter. Zooming out, this was a mixed but overall mediocre quarter.

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What is the market telling us:

Malibu Boats's shares are not very volatile than the market average and over the last year have had only 9 moves greater than 5%. Moves this big are very rare for Malibu Boats and that is indicating to us that this news had a significant impact on the market's perception of the business.

Malibu Boats is down 20.2% since the beginning of the year, and at $43.01 per share it is trading 34% below its 52-week high of $65.17 from February 2023. Investors who bought $1,000 worth of Malibu Boats's shares 5 years ago would now be looking at an investment worth $1,072.

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