MasterCraft (MCFT) Q2 Earnings: What To Expect

Sport boat manufacturer MasterCraft (NASDAQ:MCFT) will be reporting earnings tomorrow before market open. Here’s what you need to know.

MasterCraft beat analysts’ revenue expectations by 3.1% last quarter, reporting revenues of $95.71 million, down 42.6% year on year. It was a weak quarter for the company, with underwhelming earnings guidance for the full year. It reported 805 total units, down 51.4% year on year.

Is MasterCraft a buy or sell going into earnings? Read our full analysis here, it’s free.

This quarter, analysts are expecting MasterCraft’s revenue to decline 62.1% year on year to $63.09 million, a further deceleration from the 15.5% decrease it recorded in the same quarter last year. Adjusted loss is expected to come in at -$0.22 per share.

The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. MasterCraft has a history of exceeding Wall Street’s expectations, beating revenue estimates every single time over the past two years by 4.1% on average.

Looking at MasterCraft’s peers in the leisure products segment, some have already reported their Q2 results, giving us a hint as to what we can expect. Harley-Davidson delivered year-on-year revenue growth of 12%, beating analysts’ expectations by 27.2%, and Latham reported a revenue decline of 9.6%, topping estimates by 2.2%. Harley-Davidson traded up 8.7% following the results while Latham was also up 42%.

Read our full analysis of Harley-Davidson’s results here and Latham’s results here.

Inflation fears have put pressure on growth stocks, and while some of the leisure products stocks have fared somewhat better, they have not been spared, with share prices down 2.2% on average over the last month. MasterCraft is down 4.9% during the same time and is heading into earnings with an average analyst price target of $20.7 (compared to the current share price of $20.19).

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