CLEARWATER, Fla. - MarineMax, Inc. (NYSE:HZO), the world's largest recreational boat and yacht retailer, today reported a mixed fiscal 2024 second quarter, with earnings falling short of analyst expectations but revenue slightly increasing.
The company's stock responded positively, climbing 3.8%, signaling investor optimism despite the earnings miss.
For the quarter ended March 31, 2024, MarineMax posted adjusted earnings per share (EPS) of $0.18, which was below the analyst consensus of $0.66. Revenue for the quarter was $582.9 million, up 2% from the previous year but falling short of the consensus estimate of $590.19 million.
The company attributed the revenue increase to a rise in boat sales, which also saw a comparable same-store sales growth of 2%.
Brett McGill, CEO and President of MarineMax, commented on the results, "Our performance was impacted by ongoing softness in the marine market, highlighting broader macroeconomic concerns including elevated interest rates and persistent inflation." He added that the company's strategic growth in higher-margin businesses helped maintain strong gross margins.
MarineMax's gross profit for the quarter decreased 5.2% to $190.4 million from the prior year, and the gross profit margin dropped to 32.7%, a decrease from 35.2% in the same quarter last year. The company noted that more aggressive promotional activity was necessary to support consumer purchasing decisions in a challenging retail environment.
Looking ahead, MarineMax revised its fiscal year 2024 guidance. The company now expects adjusted EPS to be in the range of $2.20 to $3.20, with the midpoint of $2.70 falling below the analyst consensus of $3.36. Adjusted EBITDA guidance for the year was also revised to a range of $155 million to $190 million.
Despite the earnings miss and downward revision in guidance, shares of MarineMax rose following the announcement. The positive market reaction may be attributed to the company's proactive measures to align its cost structure with the current market environment and its focus on higher-margin businesses, which investors appear to view favorably.
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