Why MarineMax (HZO) Stock Is Nosediving

Max Juang /
2024/01/25 10:54 am EST

What Happened:

Shares of boat and marine products retailer MarineMax (NYSE:HZO) fell 15.5% in the morning session after the company reported first quarter results that missed analysts' revenue and non-GAAP EPS estimates. Gross margin also declined significantly. Looking ahead, its full-year earnings forecast was lowered and significantly missed Wall Street's estimates. Management called out "a challenging retail environment which required us to take more aggressive pricing actions...pricing actions did result in lower gross margins and profitability. This was primarily due to increased discounting on certain boat models in response to the softer retail environment." Overall, it was a weak quarter for the company.

The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks. Is now the time to buy MarineMax? Access our full analysis report here, it's free.

What is the market telling us:

MarineMax's shares are not very volatile than the market average and over the last year have had only 19 moves greater than 5%. But moves this big are very rare even for MarineMax and that is indicating to us that this news had a significant impact on the market's perception of the business.

MarineMax is down 29.3% since the beginning of the year, and at $27.56 per share it is trading 32.3% below its 52-week high of $40.71 from July 2023. Investors who bought $1,000 worth of MarineMax's shares 5 years ago would now be looking at an investment worth $1,492.

Do you want to know what moves the stocks you care about? Add them to your StockStory watchlist and every time a stock we cover moves more than 5%, we provide you with a timely explanation straight to your inbox. It's free and will only take you a second.