MasterCraft Boat Holdings Is Maintained at Neutral by DA Davidson

MasterCraft Boat Holdings, Inc. MCFT reported first-quarter fiscal 2025 results, with earnings and revenues beating the Zacks Consensus Estimate. However, the top and bottom lines declined on a year-over-year basis.

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Following the results, the stock surged 25% during trading hours on Wednesday. Positive investor sentiments were witnessed as MCFT provided a better-than-expected earnings outlook for fiscal 2025. Strong inventory management and a focus on enhanced shipping products reinforced confidence in future growth. Additionally, the company highlighted its robust balance sheet and disciplined capital allocation, including the recent sale of its Aviara brand and manufacturing facility, paving the path for enhanced liquidity and operational focus.

MCFT’s Q1 Earnings & Revenue Details

During the fiscal first quarter, the company reported an adjusted earnings per share (EPS) of 12 cents, beating the Zacks Consensus Estimate of 3 cents. In the prior-year quarter, MCFT reported an adjusted EPS of 60 cents.

MASTERCRAFT BOAT HOLDINGS, INC. Price, Consensus and EPS Surprise

MASTERCRAFT BOAT HOLDINGS, INC. price-consensus-eps-surprise-chart | MASTERCRAFT BOAT HOLDINGS, INC. Quote

Quarterly revenues of $65.4 million beat the Zacks Consensus Estimate of $61 million by 6.4%. However, the top line declined 30.7% on a year-over-year basis. The downside was caused by lower unit volume and unfavorable model mix and options.

During the fiscal first quarter, net sales in the MasterCraft segment were $55.5 million compared with $75.8 million reported in the prior-year quarter. Net sales in the Pontoon segment declined 46.8% year over year to $9.8 million.

Operating Highlights

During the fiscal first quarter, Selling and marketing expenses declined 6.8% year over year to $2.9 million. General and administrative expenses were $7.5 million compared with 8.4 million reported in the prior-year quarter.

Gross margin during the quarter declined 570 basis points year over year to 18.1%. The downside was driven by lower cost absorption resulting from planned reductions in unit volume and higher dealer incentives.

Adjusted EBITDA during the quarter came in at $3.8 million, compared with $14 million reported in the prior-year quarter. Adjusted EBITDA margin in the fiscal first quarter came in at 5.9% compared with 14.9% reported in the year-ago period.

Balance Sheet

As of Sept. 29, 2024, cash and cash equivalents totaled $14.2 million compared with $7.4 million on June 30, 2024.

Inventory during the quarter was $37.3 million compared with $37 million reported in the prior-year period.

As of Sept. 29, long-term debt (net of unamortized debt issuance costs) was $49.5 million compared with $44.9 million as of June 30, 2024.

Fiscal 2025 Outlook

For second-quarter fiscal 2025, the company expects net sales to be approximately $60 million. During the quarter, adjusted EBITDA is anticipated at approximately $1 million. In the fiscal second quarter, the company expects adjusted loss per share to be approximately 1 cent.

For fiscal 2025, the company expects net sales to be $270-$300 million. The company expects adjusted EBITDA to be $17-$26 million. Capital expenditures during the year are projected at $12 million. The company expects 2025 adjusted EPS to be between 55 cents and 95 cents, up from the previous expectation of 36-87 cents.

MCFT’s Zacks Rank

MasterCraft Boat currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks Rank #1 (Strong Buy) stocks here.

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