Q2 Rundown: Malibu Boats (NASDAQ:MBUU) Vs Other Leisure Products Stocks

MBUU Cover Image — Q2 Rundown: Malibu Boats (NASDAQ:MBUU) Vs Other Leisure Products Stocks

Kayode Omotosho

Thu, Sep 26, 2024, 2:27 AM 4 min read

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 Q2. As a group, revenues were in line with analysts’ consensus estimates while next quarter’s revenue guidance was 16.6% below.

Inflation progressed towards the Fed's 2% goal recently, leading the Fed to reduce its policy rate by 50bps (half a percent or 0.5%) in September 2024. This is the first cut in four years. While CPI (inflation) readings have been supportive lately, employment measures have bordered on worrisome. The markets will be debating whether this rate cut's timing (and more potential ones in 2024 and 2025) is ideal for supporting the economy or a bit too late for a macro that has already cooled too much.

Thankfully, leisure products stocks have been resilient with share prices up 6.7% on average since the latest 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 $158.7 million, down 57.4% year on year. This print exceeded analysts’ expectations by 1.1%. Despite the top-line beat, it was still a softer quarter for the company with a miss of analysts’ earnings estimates.

“As the new CEO of Malibu Boats, I am committed to our goal of navigating the near-term headwinds while enhancing our roadmap for strategic growth. I am excited about the opportunity to continue our presence as the premier manufacturer of recreational powerboats. Our focus on developing premium products for all our brands remains unwavering as we introduce our new Model Year 2025 lineup,” commented Steve Menneto, Chief Executive Officer of Malibu Boats,

Interestingly, the stock is up 9% since reporting and currently trades at $38.06.

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

Best Q2: American Outdoor Brands (NASDAQ:AOUT)

Spun off from Smith and Wesson in 2020, American Outdoor Brands (NASDAQ:AOUT) is an outdoor and recreational products company that offers firearms and firearm accessories.

American Outdoor Brands reported revenues of $41.64 million, down 4.1% year on year, outperforming analysts’ expectations by 1.4%. The business had a very strong quarter with an impressive beat of analysts’ earnings estimates.

Although it had a fine quarter compared its peers, the market seems unhappy with the results as the stock is down 1.9% since reporting. It currently trades at $9.01.

Is now the time to buy American Outdoor Brands? Access our full analysis of the earnings results here, it’s free.

Weakest Q2: Ruger (NYSE:RGR)

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

Ruger reported revenues of $130.8 million, down 8.4% year on year, falling short of analysts’ expectations by 5%. It was a disappointing quarter, leaving some shareholders looking for more.

As expected, the stock is down 6.2% since the results and currently trades at $42.32.

Read our full analysis of Ruger’s results here.

Clarus (NASDAQ:CLAR)

Initially a financial services business, Clarus (NASDAQ:CLAR) designs, manufactures, and distributes outdoor equipment and lifestyle products.

Clarus reported revenues of $56.48 million, down 2.5% year on year. This number lagged analysts' expectations by 4.8%. It was a disappointing quarter as it also recorded a miss of analysts’ earnings estimates.

The stock is down 20.3% since reporting and currently trades at $4.59.

Read our full, actionable report on Clarus here, it’s free.

Brunswick (NYSE:BC)

Formerly known as Brunswick-Balke-Collender Company, Brunswick (NYSE: BC) is a designer and manufacturer of recreational marine products, including boats, engines, and marine parts.

Brunswick reported revenues of $1.44 billion, down 15.2% year on year. This result lagged analysts' expectations by 6.9%. Overall, it was a disappointing quarter as it also logged revenue guidance for next quarter missing analysts’ expectations.

The stock is up 10.1% since reporting and currently trades at $80.95.

Read our full, actionable report on Brunswick here, it’s free.

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